If you made a New Year’s resolution to grow your savings account, you are not alone. However, it can be difficult to go from happy holiday spending to learning to actually save and grow your money. The good news is that by taking a few simple steps, you can grow your savings while creating better habits when it comes to your financial health.
Creating a personal budget will help you to map out your finances and work out where your money is going. It’s important to live within your means and not spend more than you earn. Start by tracking your monthly spending and see how it compares to your earnings by using McHenry Savings Bank (“MSB”) eBanking Personal Finance Manager. Then, set a budget to help you stay in the black. If you need additional help, try using this MSB’s Budget Percent Calculator.
Stay Focused on SMART Money Goals
People tend to be more enthusiastic about their new savings goals and spending plans early in the year, but a very small percentage of resolution makers actually keep it up. Writing down money goals - and even representing them visually - can keep the motivation going. For instance, if you want to save money for travel, keep pictures of your prospective dream vacation at hand and pull them out whenever you’re tempted to buy something you don’t really need.
SMART goals must be Specific, Measurable, Attainable, Realistic, and Time-sensitive. For example, rather than setting an ambiguous goal, like "save more money," make it SMART by aiming to save an extra $3,000 for emergencies by the end of the year. Work out how much you need to save each paycheck to reach your goal with MSB’s Savings Goal Calculator.
Make the most out of 2019 and better your financial life. Just remember that saving money takes time, and you might not see the effects rights away. Don’t get discouraged! Putting in an effort to develop solid habits will help you follow through with your savings goals - even after the excitement of the New Year has worn off.
MSB can provide you with the right product to help you meet your short-term and long-term financial needs. Now is a great time to save for Christmas 2019 with our Christmas Club Savings Account. This account earns interest, you can deposit as much as you like, and at the end of October you will be sent a check with the money you have saved plus interest earned…. Just in time for holiday shopping.
If you are looking to earn more interest on your money, Certificates of Deposit and Money Market Accounts are also a great addition to your financial portfolio. Visit McHenry Savings Bank to for more information on our savings products so or call 815-385-3000 to speak with personal banker today. Make sure to LIKE us on Facebook and stay up-to-date on current events, blogs, and specials.