By Association for Financial Counseling & Planning Education
When it comes to savings, there are three undeniable truths.
When people make a savings goal, they are doing so to fill a want or a need – to purchase a house, to fund a secure retirement, to build up an emergency fund, to take a vacation. Before taking that first step to reach your goal, it is important to understand the why behind your goal. While many people have similar savings goals, the why is unique to you. Drilling down to your why, the reason behind your goal, will provide you with motivation to draw upon if/when an obstacle arises on the path to reaching your savings goal.
Now that you know the why behind your goal, it’s time to put a plan in place. Research shows that having specific savings goals and using savings rules increases your probability of saving. We’ll call those rules your plan. Whenever you set a goal, make sure that goal is a SMART goal. What’s SMART stand for?
S – Specific
Write it down. Define the what, the why and the how.
M – Measurable
Indicate a specific $ amount, interim milestones and a specific deadline to allow you to measure your progress.
A – Actionable
Figure out the changes you need to make and/or the steps you need to take to reach your goal.
R – Realistic
Ask yourself, Do I have the time and the resources to make this goal happen, or a support system to help me get there?
T – Timely
Make sure you have a time frame. This creates a sense of urgency to keep you moving forward.
And when it comes to meeting your goals, it can make a world of difference. If you made a fitness goal, you might hire a personal trainer. If your goal was weight loss, you would probably consult with a nutritionist or dietitian. For savings goals, we recommend connecting with a financial counselor, planner or coach. But first, do your research. Not all financial professionals are created equal.
Consider working with an Accredited Financial Counselor® (AFC®). An AFC® works with individuals and families from all backgrounds and income levels. Regardless of your financial history or current financial status, an AFC® will meet you where you are and help you establish healthy money habits and behaviors that can lead to financial freedom and ultimately, achieving your unique savings goal.
Are you trying to save money? Let Military Saves help you reach your savings and debt reduction goals. It all starts when you make a commitment to yourself to save. We'll keep you motivated with information, advice, tips, and reminders to help you reach your savings goal. Think of us as your own personal support system.
There are 3 undeniable truths when it comes to savings. Learn what they are here and how they can help you reach your savings goals >> http://bit.ly/2Cl7gCr @AFCPE @MilitarySaves