Publish Date: January 13, 2023
Now that we’ve welcomed a new year, it is also a good idea to consider welcoming new savings habits. Setting reasonable resolutions isn’t always the easiest, which is why Leo Hickie, Regional President at Fidelity Bank & Trust, wanted to offer some simple ideas to start.
“Developing positive savings habits is important because it gives us the ability to plan for our future, including the unexpected,” said Hickie. “Implementing a few simple savings resolutions for the rest of the year can make a huge difference in your overall financial health," he added.
To stay realistic with your goals, Leo recommends to pick one or two savings resolutions to implement in 2023. Get started with these ideas:
- BUILD AN EMERGENCY FUND
If you don’t have an emergency fund, this should be your first item on your resolutions list. The unexpected happens, well, unexpectedly. Don’t get caught off guard without the money to fix your problem. A new HVAC system or car can be needed out of the blue, and you’ll want to be sure you’re prepared for random expenses. If you already have an emergency fund, great! But, you’ll want to work on growing it.
- MAKE EXTRA PAYMENTS
Making your minimum payments on what you owe is great; however, try stepping up your game by increasing the amount you pay towards your credit card and loan balances. We understand you can’t always make extra payments, but when you can, put your cash towards debts with smaller balances and/or those with higher interest rates. You can even utilize our Accelerated Debt Payoff Calculator to help see how much money you can save!
- DEDICATE AND AUTOMATE YOUR SAVINGS
Set up separate savings accounts for your specific savings goals. This will help you allocate money to a specific purpose and keep your funds organized. For example, one savings account could be for emergencies while another could hold funds for a mortgage downpayment. Once you have your savings account(s) specified, set up automatic transfers. This way you don’t have to worry about manually transferring funds and you’ll be able to watch your savings grow for each purpose you’ve specified.
- SAVE MORE FOR RETIREMENT
Many people don’t think about saving for retirement early; however, if you wait to save, you won’t have as much time for your funds to accrue. Start thinking about how much you will actually need when the time comes to retire. A good rule of thumb for your 20s is to save 10% of your pre-tax income. When you come to your 30s and begin saving, you’ll need to save 15-20%. If you start saving in your 40s, 30% will be the number to save.
- TRACK YOUR SPENDING
Many don’t realize the positives of tracking how much is spent each month. As Your Bank, we make this easy utilizing our top-notch online and mobile banking tools. Knowing how much money you make and where it goes every month will help you budget better. This can help you realize where you are spending too much and find ways to save!
Remember, pick one or two of the above items to implement this year so you’re not overwhelmed. Once you’ve locked down your resolution, begin thinking which one you’ll pick for the next year. With these ideas in mind, you’ll be able to get closer to your financial goals sooner than expected! If you need help growing your funds, contact us - we’d be happy to provide a solution for you.
