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Key points
- A recent survey reveals that boosting savings is Americans’ top financial resolution for the new year.
- There are steps you can take to grow your savings without cutting back too drastically on the things you love.
It’s that time of the year — a time when people assess their finances and pledge to improve them. As 2022 gets closer, we can bet that a lot of people will be making New Year’s resolutions. In a recent Bank of America survey, increasing savings was the top goal among respondents, with 40% saying they wanted to grow their cash reserves. If that’s a goal of yours, too, then here’s how to make it happen.
1. Put your savings on autopilot
These days, most bank accounts offer you the option to set up an automatic transfer. In doing so, you send money from your checking account to your savings account off the bat, before you get a chance to touch that money. An automatic transfer helps you get savings out of the way, which may then make it easier to divide up the rest of your money across essential and non-essential spending.
2. Get a side hustle
Cutting back on non-essential spending is a great way to boost your savings. But let’s be real – it’s not exactly a fun way to live. If your weekly takeout meals, movie nights with friends, and yoga classes are what help you enjoy life, then you may be really hesitant to give those things up. If you’re able to boost your income to carve out money for savings, you shouldn’t have to.
These days, there are numerous side hustle options you can choose from, whether it’s driving for a ride-sharing service, walking dogs, babysitting, or doing social media marketing in your spare time. Figure out what your specific savings goals look like so you can land on the gig that’s best for you. Also, keep your schedule in mind when picking a second job. If your main job tends to have you working long hours during the week, you may want to find a side hustle that can be done on weekends only.
3. Be strategic with windfalls
You . It could come in the form of a tax refund, a generous gift from a family member, or a bonus at work for a job well done. There – though we obviously can’t bank on that happening. Either way, if you’re able to avoid the temptation to spend your extra money and you stick it in the bank instead, it could get you that much closer to meeting your goals.
The more savings you have, the more financial security you’ll buy yourself. It’s especially important to have enough money in savings to cover three to six months of essential living expenses. That way, you’ll have a cushion to tap in case you lose your job or encounter an unplanned bill, like a home repair, that your paycheck can’t cover. These tips could help you not only meet your savings goals, but give you something to be proud of – the fact that you not only made a New Year’s resolution, but stuck to it.
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