As you enter different milestones in your life, it is important that you’re financially ready to take on any expenses that might come your way. These milestones are not only significant to your emotional, mental, and physical well-being, but they have an impact on your financial well-being as well. Facing these monumental moments can be exciting, challenging, and scary all at once. You should be able to spend these moments with as little financial worries as possible, so we want to share with you some unique tips on how to save intentionally for them.
Big life milestones are events that are meaningful to you. Here’s some examples of what milestones you could have in mind:
Whether you’re celebrating an anniversary by going on an overseas trip or planning to propose to your girlfriend soon, these exciting experiences shouldn’t be clouded by the stress of financial anxiety.
The greatest benefit of starting to save early for big life events is being able to be all-in for what you are getting to experience or accomplish. While most major milestones in our lives come with financial responsibilities, that doesn’t mean you should face them with apprehension. Instead, being able to save efficiently provides you with a calmer mindset, so you can focus just on the excitement and joy of the moment itself.
For long-term goals like retirement, compound interest is a game-changer as you’re saving money. Having this effect on your savings would not be possible if you don’t invest your money early. The earlier you invest and put into an interest-earning account, the more money you’ll accumulate over the years. Inflation also plays a role in saving early. Since inflation rates could change without notice, saving early helps you to be ready for any unexpected variations in rates.
As you think about what you need to do to begin saving for the upcoming milestones in your life, you may feel uncertain about where to start. We want to share with you some helpful strategies that you could implement in your spending habits to help you achieve your financial goals.
Prevent reckless spending by creating a shopping list for your next shopping excursion. This could be a list for:
Each of these lists will help you to think beforehand about the things you need, not everything you want. This will narrow down any excess spending that may occur. You’ll be less tempted to scour the store by having a mission in mind compared to simply browsing for fun. Keep in mind there is nothing wrong with shopping for fun; just make sure that you’re being financially smart by not buying everything you see! This strategy will help prevent you from doing that and hurting your budget.
While specialty restaurants and retailers are fun places to explore, they may not be the best places for your wallet. Shopping at discount stores, such as TJMaxx or Marshall’s, provide cheaper deals on designer brands. For online shopping, Amazon and Old Navy are good options that offer a variety of brands and prices.
A major concern you may have is where to your purchase your groceries. The cheapest grocery store in America is Aldi, which sells mostly off-brand products and overstock. If you have a larger family, Walmart and Sam’s Club are great options for buying wholesale items for less.
Creating a meal plan can help you know how much you’ll spend every week on groceries and food for you and your family. Since eating out is typically more expensive, preparing meals at home can help you to save more by knowing in advance what ingredients you’ll need to purchase. It could also encourage you to develop the habit of eating at home.
It can be a challenge to save for larger expenses when you’re trying to pay off the ones you already have. While there may be some debts that will take years for you to pay off, such as a mortgage or student loans, try to tackle any smaller debts one-by-one. You can also increase your monthly loan payment to pay off your loans faster if you realize you can allocate more from your budget.
While you may love getting an iced latte or fresh cup of cold brew, your trips to the coffee shop may be costing you more than you think. According to a recent survey, Tennesseans spend an average of $10.15 per week on takeout coffee. This may not seem much, but these outings can add up per month, especially if you’re a regular visitor.
We all have our favorite TV shows and movies we love to watch. Unfortunately, many of them can be spread out across multiple different streaming services. Be sure to cut back and choose only one to stick with instead of paying for all of them.
Depending on where you live, different gas stations will offer varying prices and discounts. Be sure to investigate what is being promoted, and compare which deals work best for your own budget. Grocery stores like Kroger have a fuel points program that builds points from what you spend in the store.
As you begin to choose which strategies you’ll use to save, it’s important that your money is being put into a safe place. Putting your money into an interest-earning savings account could be a great option for you to grow the earnings for your milestone. Since it can be easy to spend this money, it is important that your savings are automated into the account you choose. This will help protect you from accidentally using your savings for spending. It could be helpful to name your account, so you have your money in a designated location.
Preparing financially for the ambitions in your life doesn’t have to be filled in worry. We hope the strategies we’ve shared with you will help you feel more confident in being prepared for the exciting milestones that are coming soon in your life.
Are you looking for ways to save for major life events like a wedding, graduation, or retirement? Leaders Credit Union can help you handle these moments with ease by guiding you to the best savings accounts for your goals. Check out our free Beginner’s Guide to Establishing Savings for more money saving tips.