Reduce stress
Financial stress is real! It can be overwhelming to have bills and expenses that we struggle to pay each month. In fact, many researchers see a significant connection between financial stress and mental health and well-being. When you build up savings, you reduce the stress many of us feel about our finances and give yourself a priceless gift – peace of mind.
Provide a sense of freedom
Gaining a sense of freedom might not be the first thing that comes to mind as a benefit of setting up a savings plan, yet many people who do report enjoying a sense of improved freedom and flexibility after building up savings, no matter the amount. Setting aside even $20 a paycheck is proven to provide a feeling of freedom due to the “buffer” savings give you. Knowing that buffer exists gives people more freedom to choose how to handle their finances, rather than feeling stuck in a particular situation.
So, how do you get started?
1. Assess your budget.
Use Greenpath’s Budgeting Worksheet to get a handle on your monthly income and typical expenses, including credit card debt or other loan payments.
2. Commit to a monthly savings amount.
Once you have a complete picture of monthly income, expenses, and debt, consider how much you can set aside each month to build up savings. How much you set aside will depend on your financial goals. For instance, if you’re planning for a large purchase, break down the amount over a 6- or 12-month period and automate savings to meet that goal.
3. Automate your savings.
Automating savings make it more “painless!” You’ll be able to set it and forget it by paying yourself first through automated deposits.
4. Make it a family affair.
Setting a savings goal with loved ones lets you come to a consensus about goals and dreams. That way, it is easier for you all to plan and encourage each other to save for emergencies, planned expenses, or other goals.
Saving for the future is closer than you think! Building savings can seem like a daunting task, but you will start to see results with practice and patience.
If you’re unsure how much you can reasonably save each month or need a helping hand getting started, you can request a free financial health assessment! MEMBERS1st has partnered with Greenpath Financial Wellness to help you create a plan to meet your goals. It’s free, confidential, and no pressure.
