By Brady Stratton | Published May 5, 2022
The concept of “saving for a rainy day” is not foreign to most people. In fact, if you were to survey the general population, I’m confident that the majority would say they have a “desire to build their savings.” But building savings is easier said than done. With increased costs of living, monthly bills, and unexpected emergencies, saving money often takes a back seat to other priorities. And when we don’t build a habit of doing something, it is easy to forget.
So how can you ensure that saving for the future remains on the top of your priority list and that you follow through with your desire? Here are a few of tips for success.
Save with a purpose.
Saving for the sake of saving itself will not lead to success. It’s too easy to spend money that is not set aside for a specific purpose. Instead, identify a reason to save. A few examples could include purchasing your first home or car, family vacation, education expenses, a new mobile phone- the possibilities are endless! There are no rules regarding what qualifies as a good savings purpose. Whatever will motivate you is enough to get started.
Budget your savings.
People who have found success in building up their reserves view savings as just another bill to pay- the only difference is you’re paying yourself instead of your utility or insurance provider. Regular bills come with due dates and the expectation that the recipient will keep their end of the contract by providing payment. Savings, when viewed with this lens, becomes a non-negotiable item in your monthly budget. When you sit down to pay bills, you know that “savings” will be one of them and you work to ensure you have enough money to cover it. This practice will help you revaluate your spending habits and make better buying decisions. Start off small to be successful. Charge yourself a “savings bill” that will fit within your budget. As your income increases, your savings bill can also increase!
Automate your savings.
In our digital world, it’s very easy to automate savings using tools like online/mobile banking paired with automatic transfers or direct deposit. Utilizing these tools allows you to save in the background without even thinking about it. Adjustments can always be made on amount and frequency based on your current situation. Before you know it, you’ll have a nice lump of money built up ready to help you navigate those rainy days with success!
Author: Brady Stratton, SVP Marketing & Sales Officer
Brady has worked with First Community Bank for 11 years and has a passion for financial literacy, budgeting and helping people reach their dreams. He currently serves on the bank’s Community Reinvestment Committee whose purpose is to help build local communities through lending, investments, and service.