Every year you say your’e going to do it and every year your savings account is not existent. We are getting older Millennials and we have to plan for the future. You may have your 401k but is it that enough? We spoke with Priya Malani, co-founder of Stash Wealth, and she gave us 8 ways H.E.N.R.Y.s™ can stay committed to their savings goals.
1) Automate Your Savings – Whether you set up a direct deposit from your paycheck to a separate bank account or automate the savings directly out of your checking account into a savings account, automating it is the number one way to ensure it happens.
2) Use An Online Bank – Keeping your savings at a different bank than your checking account helps big time. We want your savings “out of sight, out of mind”. Plus with an online bank like CapitalOne360 or Ally, you’ll be earning a higher interest rate than at your typical brick and mortar bank. #makeyourmoneyworkforyou
3) Nickname Your Goal – Don’t save for the sake of saving. Put a goal behind it. Want to take a trip abroad next year? Nickname your savings account (many online banks allow you to do this) to reflect your goal and you’ll be less likely to touch that money for frivolous or non-essential purchases throughout the year.
4) Use Apps – Digit is our favorite savings app. It helps you save even when it feels impossible to do so.
5) Avoid Debt Pitfalls – If you don’t trust yourself with a credit card and are worried you may rack up a balance higher than what you can afford to pay off each month, switch to debit or even cash.
6) Create Group Goals – It can help to have a friend to hold each other accountable. If you and a buddy are saving up to go to a friend’s bachelor party, you’re more likely to stay strong if you’re focused on hitting a goal together.
7) Set Realistic Goals – Maybe you have some big goals, but it helps to break those bigger goals into smaller more easily attainable short-term goals. Ex. Goal is to buy a $2800 WestElm couch by August. Create a goal to save $350/mo which is way more manageable than trying to come up with thousands of dollars.
8) Reward Yourself – Along with #7, when you hit a mini-milestone, reward yourself in a way that doesn’t blow your strategy. Figure out what your reward is in advance so you don’t sabotage your hard work. I like to treat myself to a massage, happy hour or splurging on a nicer ($20 vs $10) bottle of wine.