Each January we get a powerful fresh start in the form of a new year. That clean slate for the year ahead encourages us to set goals, try new things, and improve our habits for the year ahead. Often fitness and health goals get all the attention. Our friends are on social media sharing their new eating plan or marathon training schedule. Health goals are important, but financial goals can be just as important for overall wellness! As we head into 2023, why not try out some savings goals and shift some focus to your financial health?
Changing our behavior is always a challenge. In many ways, our brains aren’t wired to give up the things we want now for something we might be able to have in the future. And as our goals get bigger and further in the future, this gets more and more difficult. We might really want to pay off our car loan or student loan, but those things can take small amounts of money over many years. Spending that money on things we enjoy now would definitely be more fun and using that money to pay down debt can feel pretty anticlimactic.
One strategy for improving our motivation is to create a vision board. Ideally, this vision board would focus on a specific large financial goal. It would include pictures that show:
- How it would feel to achieve the goal
- What you would be able to do when you achieve the goal
- The kinds of characteristics you will have when you achieve the goal
Looking at the vision board reminds us that the goal is important, possible, and that achieving it will change our lives for the better! It helps us visualize that when we say no to something right now, it is because we want to be able to say yes to something else in the future. I made one recently and hung it where I would see it each morning. It was focused on a dream I have always had to travel. After 5 years of saving, my husband and I took the trip I had always dreamed of last summer! I’m looking forward to making a new one for this year because the previous one was such a great source of motivation.
The vision board is an excellent tool for motivation, but it needs to be paired with strategies you can actually use to save the money. One option is to start small because it gives you the chance to create a new habit without having to stick with any really major changes. For example, my bank allows me to use rounding up to increase my savings. With rounding up, each of my purchases is rounded up to the nearest dollar and the rounded-up amount is placed in my savings account. For example, if I bought dinner and it was 19.20 then my bank would round that charge up to 20.00. Of that, 19.20 would go to the restaurant and 0.80 would go into my savings account. The amounts are small, but they add up over time!
If you’re looking to save in larger amounts, it might be good to look into your bank’s options on savings accounts. At my bank, it doesn’t cost me anything to open an additional savings account and I can do it from right within their app. Once I have the account, I can add a label to it. I usually label my accounts with what I want to do with the money in the account. An example would be an account labeled “Emergency Fund” where I save for emergencies, or “Summer Vacation” where I save to take a trip with my family over the summer. Some banks even let you set a goal for your account and give you a status bar showing how much progress you have made toward your savings goal.
Things like this can really help with motivation! It seems simple, but adding these labels can be a powerful way to change the way our brain thinks about money. If I am running short and need to move some money from savings to make a purchase, seeing that label makes me stop and think. Is it really worth it to me to take money from my summer vacation to buy this other thing? Sometimes it’s groceries or an important bill, and the answer is yes. But other times I realize I’d much rather go on vacation than buy whatever it is I’m considering.
These small changes can add up to some major savings over the course of a year. They can help you establish an emergency fund and save for future needs (and wants). Hopefully you try out some savings goals or other financial goals this year! Drop a comment and let us know, do you have a savings goal for 2023? Are there any strategies you use that work for you?
Pay Off High-Interest Debt
Medium Term
Breathing Room 