Increasing Your Personal Savings to Build an Emergency Fund
If you are one of those individuals who feel like money just flies out of their hands as soon as it arrives, then you may need to develop different habits that will allow you to grow your personal savings.
Remaining on track and reaching your savings goals can be quite challenging especially with all the expenses you have to cover. Also, it can be difficult to overcome the urge to spend your hard-earned cash when you’re used to buying things to satisfy your desire for instant gratification.
Don’t worry, there are banks in CT that offer different interest-bearing savings accounts that will allow you to earn from interest and reach your savings goals sooner.
And while there is no magic solution to meeting your financial goals, there are some useful ways you can save money for emergency purposes or for a property investment in the future.
Here are some strategies you can apply to help you grow your personal savings.
Write down your motivation for saving money
One of the best ways to maintain your motivation for saving money is to remind yourself of the main driving force behind your goal. In essence, you need a “why” that will drive and inspire you to save. It may be a desire to build an emergency fund or invest in property five years from now.
Once you write down your reasons for growing your savings, it will be much easier to avoid losing enthusiasm and interest in setting aside a portion of your paycheck for long-term savings.
Whenever you feel demotivated, just refer to the reasons you wrote down and make sure to focus on your long-term goals.
Set realistic goals
Many people quit saving money because they set goals that are too intimidating. If you wrote down building an emergency fund as one of your reasons for saving but set a goal that looks impossible to achieve, you might end up discouraged and unable to continue saving.
The important thing to remember here is to have a goal that does not scare you that you want to avoid it. But if you are still keen on reaching an “impossible” goal, set small milestones to celebrate and keep you motivated.
Instead of writing down a target of $15,000 in four years, break it down into monthly savings so that it does not sound too intimidating.
Creating a budget involves assessing your current income and expenses and committing to stick to it. When making budgets, do not forget to include large costs such as insurance payments and tax bills, which are commonly settled annually.