Falling behind on your savings goals can happen in a flash (or maybe just one too many swipes of your credit card). All it takes is an unexpected bill that forces you to stray from your monthly budget or broader financial plan.
In fact, it’s unlikely that you’ll never fall behind on your short-term or long-term money goals, so it’s important to remember that following better money-saving tips now is a good investment in your future.
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What you don’t want to do is get discouraged when you fall behind. So, whether you are just opening a high-yield savings account or focused on saving for retirement, reaching your goals is always an option. The key is to put a plan in place to catch up as quickly as possible — and there’s no time like the present to start.
If you’re behind on setting savings goals or just want to build an emergency fund, here are some things you can do this week to catch up.
Interest rates have ballooned in recent years, thanks to a series of Federal Reserve rate hikes designed to tame inflation. This can wreak havoc on your financial goals and if you haven’t done so already, now is a good time to take advantage of high interest rates by opening a high-yield savings account such as a CD or money market account.
The power of compounding interest is a beautiful thing. If you’re keeping your money in a traditional savings account, you’re probably missing out on free money in the form of higher APYs elsewhere.
All savings are good savings but when you’re putting those numbers through a savings goal calculator, make sure you factor in how much money you can earn on your deposit account.
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Once you’ve established an FDIC-insured account that pays you competitive interest rates, set up an automatic transfer to ensure you add to it regularly. Many consumers set up monthly deposits, though you could do it more often to help build your savings even more quickly.
Most banks and credit unions give you the option of setting up automatic savings either on their websites or through their mobile apps. You could also have your employer make direct deposits into the account each pay period.
Catching up on your savings goals often means finding room in your finances when creating a budget that will allow a greater amount of money to move into your savings each month.
