Smart Savings Strategies: Building Your Financial Momentum This Summer
As the summer approaches, it’s the perfect time to energize your strategies for savings. Whether you’re gearing up for your long-awaited summer travel, a big purchase, or budgeting for childcare while school is out, Hickory Point Bank offers targeted tips to help you accelerate your savings effectively. In this blog, we want to dive into detailed, actionable strategies to make sure you’re well-prepared for what the summer holds!
Set Specific Savings Goals
We wrote earlier this month about doing a health check to ensure your finances are in tip-top shape. Now, we can ride the momentum of that work and focus on savings for the summer months. Kick off by pinpointing exactly what you want to save for. Is it a week-long beach vacation in July? Is it a trip to visit your family in August? Having both the timing and the activity selected in advance can help you understand how much you need to save.
Define these goals clearly, set a deadline, and be specific about what you want to do. In some cases, planning the trip in advance can be hugely helpful for understanding exactly how much you need to save. For instance, if you’re planning to take a vacation, go ahead and lay out how much hotels, food, transportation, and activities might cost to give you a clearer picture. Always add 15-20% as a buffer for unexpected expenses on your trip.
Automate To Accumulate
Once you’ve identified how much you need to save, automating your savings removes the temptation to skip out on a contribution.
- Sign up for Debit Card Round Up and take advantage of the automatic round up of your debit card purchases to the nearest dollar amount. The difference is then transferred from your checking account to your savings account.
- Set up a direct deposit from your paycheck into a dedicated savings account or into a high-yield savings account for additional interest on top of your savings. For instance, if you’re saving for a vacation, set up a separate “Vacation Fund” and automatically deposit funds right from your paycheck!
Budget With Precision
Adjust your budget to reflect the summer activities without compromising your overall savings. If your expenses rise over the summer due to travel or other activities, make sure you can find reductions in other spending categories such as takeout meals or maybe shopping. Usually, vacation months in the summer and holiday months towards the end of the year are the biggest culprits when it comes to getting your budget off-track. During these periods, you must be extra vigilant in maintaining a balanced budget to hit your savings and financial goals.
Tighten Up Daily Expenditures
Saving for summer fun is the easiest saving you can do when it comes to tightening up daily expenditures because you know every little sacrifice you make now is leading towards a much-anticipated trip ahead! For example, switching from buying daily coffee or pinching pennies on your grocery bills can help a lot. Normally, making these kinds of sacrifices for long-term goals like retirement or buying a home is hard.
Boost Your Earnings (when possible)
Summer offers unique opportunities to increase your income through seasonal employment that may be helpful for working towards your summer vacation goals. Even small part-time work can make a huge difference in summer savings. Additionally, for parents, this can be a great time for your teenagers to dedicate their time to earning summer money and putting a small percentage of their earnings towards a much-anticipated trip. Making saving for vacation a family activity is a great way to boost savings morale!
Invest Windfalls Wisely
Just getting through the tax season, many people have received tax refunds or bonuses. These funds should be allocated smartly. Even 50% of a windfall towards your savings can significantly fast-track your financial targets and is a great method to give a starting point to your summer savings.
Stay Visibly Motivated
Visualization can be an excellent motivator for keeping your savings goals on track. Making a visual savings tracker and hanging it on your fridge or using a savings app with visual charts and reminders can both be helpful methods for keeping you engaged in your goals. Sharing these goals with your family and friends can make a big difference!
At Hickory Point Bank, we’re dedicated to helping you optimize your financial well-being with both practical and effective strategies. By implementing these proven tactics, you’ll enjoy a wonderful summer and ensure that your savings are not derailed by the extra expenditures that come during this time.
Let’s make this summer a season of financial growth! Come in and talk to one of our personal bankers about strategies for success in saving this summer.
