Whether it’s a vacation, retirement or a new home, your dreams are more achievable than you may realize with a few tweaks to your habits.
Are you a daily coffee person? You likely know if you are. Your local coffee shop feels like home and the barista knows you by name. You may not realize what spending $3 or $5 dollars each morning is really costing you.
Maybe your bad spending habit isn’t coffee. Maybe it’s another regular expense such as Tuesday night happy hour, an unused gym membership or overly productive trips to Target. Whatever it is, cutting back and redirecting what you’re saving could go a long way in helping you meet your savings goals.
First, find out exactly how much you’re spending on your habit. Rivermark has a free tool to help you with this within Online Banking. FinanceWorks allows you to sort each of your transactions into predetermined categories, or you can create your own. For example, you may call your coffee habit category “Starbucks” and filter all your morning coffee transactions under that category.
Tip: To get the most complete view of your finances, don’t forget to sync all of your accounts with FinanceWorks. They don’t even need to be with Rivermark!
After a period of time, check out your Trends tab. You’ll see exactly what percentage of your income is being spent on each category, including your bad habit. This will give you a clear idea of exactly how much cash you are putting into your bad habit and exactly how much to redirect into an interest-earning savings account.
You may even find that it’s not just one bad spending habit you can cut. Perhaps you have multiple expenses each month that would better be served in a savings account.
Here are some tips for making your new savings fund grow.
- Automate Your Savings
Set up an automatic transfer from your spending account into savings.
- Name Your Account
Name the account based on your savings goals. Having a tangible, well-named goal will motivate you to save more.
- Save Wisely
Saving with intention will help you reach your goal.
When you’re on the beach sipping pina coladas, you likely won’t even miss your barista.