A Game Plan for Homeowners to Restart Savings
You have been following a solid savings’ strategy, finally saving enough money to put towards a down payment on the home of your dreams. Now it is time to start again as you need to reset your savings plan to begin saving money for future purchases. This can be a difficult task. In order to help you re-start your savings, here are four ways to build that savings account back up.
Make it a Game
Making savings fun can be a great way to help you save money, especially if you are a competitive person. You can have a no spending month where you only spend money on necessities (mortgage, food, utilities); whatever is left over goes into your savings account. Another strategy is to save a certain amount each week. This number can even increase each week to help you save. Either way, you are making sure you put something into your savings account for that rainy day.
Reward Yourself at the End
The thought of saving thousands of dollars as a “just in case fund” may not seem like an exciting goal, but it is very important. When saving for your home, you knew there was an amazing outcome at the end. To keep this feeling – and your savings – going you can attach a reward to reaching your goal. Once you hit your desired amount you could spend a portion on something that you have wanted for awhile.
Remind Yourself
During your everyday spending it can be difficult to be focused on the long-term savings of your emergency fund. This can cause you to spend money on items you don’t need instead of putting money away in your savings. To avoid this mistake, put reminders of your goal everywhere. Place notes in your car, your home, your work and even put a sticker on your debit and credit cards. By doing this you can make sure you won’t forget about your goal.
Don’t Think of it as a Savings Account
An emergency fund should be considered more than just a savings account. By saving money now you are making your future better. In having this money put away you won’t have to worry about being unprepared for an unforeseen future setback. This money can ensure that you are able to live your life the way you would like to in the future.
Saving can be difficult especially when the number you need to feel comfortable with is a very large amount. To help keep yourself on track, make the savings process fun and think about how much better it will feel to have that money in your bank in the end.