January is over but it is a good time to review your bank accounts and decide what you want to save for in 2024. It’s not too late to start saving. You are not behind. But you have to start planning now so you can accomplish your goals.
Sinking funds are a great way to save money over an extended period for an event or item you anticipate happening in the future. For example, Christmas, birthday gifts, car repairs, vacations. There are so many different categories that you can save for. Remember finances are personal. Decide what you want to save for, so you are not surprised by it.
First, write out what you want to save for this year. Write down all the important days that you have for the year like anniversaries and birthdays. If you have to buy gifts for this save up for it. Are you saving for a vacation, a down payment on a house, a new car, clothes, prom, or do you want to grow your emergency fund?
Second, calculate how much can you save for each goal. Look at your budget, can you save for one thing at a time or can you do multiple items? Try not to overextend yourself if this is your first time getting into the habit of saving. If you only have $5.00 start there and increase it as you go. Something is better than nothing. Also, decide if you can get a part-time job or ask for a raise so you can save more. Is there anywhere else can you cut back on? Are you using all the subscriptions or memberships that you have? Then decide whether you are saving weekly, monthly, or bi-monthly. Plan for it and it will work out.
Third, you can use saving trackers so you can see your goals. Seeing your money grow will get you excited.
Fourth, use the money when needed.
Bonus information: Remember planning takes away the stress.
Open a high-yield savings account and transfer your funds into it. You can automate it from your paycheck so you don’t have to think about it.