Saving Money, with a Purpose

Dreaming about that tropical vacation? Or owning your dream home? You’re saving money … with a purpose!

Whatever your goals are for the future, you want to make sure you are saving money with a purpose, not just saving whatever you can.  Saving money with a purpose means you are going to make some sacrifices for your goals, and in order to be successful you need to have a plan.  Here are my 5 steps to ensure you are saving with a purpose and turning those dreams into goals, and those goals into a reality!

1. Separate Your Needs, Wishes, and Wants

We all have goals that we want to work towards financially.  It seems simple, but it is not always easy to prioritize these things when it comes to your budget.  Create a list of goals that you have and take time to separate them into those three categories.  Maybe you are saving for a home, or want to make sure you are putting enough money towards your retirement.  Decide what is top on your priority list. If you need help creating an initial budget, see my top tips here.

And if you’re a millennial, see my smart money moves for you here.

2. Write it Down!

Now that you have your priorities straight, WRITE IT DOWN!  Writing down our goals helps us to turn them into reality.  Take it a step further and tell someone else!  When we tell someone else we are not only giving them permission to hold us accountable, we are putting it out into the universe.  This makes the goal seem more real to you as well.  When you write down (or tell someone) this goal make sure it’s a SMART Goal. What is a SMART Goal?

SMART Goals: Specific, Measurable, Achievable, Relevant, Time Bound

3. Put it in Plain Sight.

Keeping your goals in your eyesight at all times, becomes a constant reminder that you have these goals so you can stay on track.  Print out a picture and post it on your refrigerator, your bathroom mirror, and put it on your cell phone lock screen.  Give yourself a constant reminder of why you are making sacrifices. 

When you get that text from your friends asking you to join them on a weekend get away, you’ll think twice about saying “yes” when you also see your dream home in the background.  You’ll feel great staying home to cook, instead of going out, when you see that tropical beach plastered on your refrigerator door, because you know you are working towards your goal!

4. Take Action! Set up a Financial Review

A goal is just a dream, unless you make a plan and actually take action!  This is the most important step, and can also be the hardest.  If you don’t know where to start, or how to create a plan that is realistic for you to stick to, schedule a meeting with me!    Sit down with someone and get some help turning your dreams into goals and eventually into your reality!

You can schedule a free financial review with someone like me to review your finances, goals, and create a plan for your future.

5. Revisit Annually.

Our lives are constantly changing, and your plans and goals should change to reflect those life changes.  Every year businesses will look at what worked for them, what didn’t, and make changes to ensure they are staying on track with their business goals.  You should do the same with your goals.  A plan that worked for you last year, might not work for you next year.  Maybe your salary has changed, or you had a baby, these things will effect your plan and maybe even your goals.  So make sure you sit down and look at your plan annually, analyze where you can do better, and keep working towards your goals!  Once you reach those goals, create new ones!

-Kristin Francy, Insurance and Financial Service Agent

Hear more of what I have to say on this topic here.