6. Set goals and save for them
Once you’ve set your goals, start saving for them to pay for your future purchases in cash and not take on any debt.
Tip 1: List your goals and determine how much you need to save for them.
This includes your next car, vacation, furniture, kid’s college, etc.
Listing your goals within a budgeting tool helps you track your progress and see the amount you’ll need to save for each goal.
Set up Goals and BudgetsTip 2: Open a savings account.
Keep your emergency savings fund separate from your goal-based savings. This will help you know how much money you have saved up for specific goals rather than the money you have set aside for unexpected expenses.
To stay extra organized, open up a separate savings account for each of your unique goals.
Explore Savings AccountsTip 3: Rename your accounts to keep your goals visible.
Put a name to your savings account like “My Next Car” or “Our Wedding.” This will keep your momentum going by visualizing what you’re working towards alongside your expenses.
Rename Your Accounts