By: Financially Mindful
Each year, you wipe the slate clean and come up with new goals. Financial goals seem to be the most difficult to set and to achieve. Building a savings plan is one of the top financial goals that is set by most individuals.
If this is your goal, here are 5 Ways To Jump-Start Your Savings Plan For 2016.
1. Raise and/or Bonus
Although we are still climbing out of an economic downturn, some companies are honoring incentives like annual raises and/or bonuses. Instead of a shopping spree, commit to putting your bonus in a savings plan. Wouldn't this be a great jump-start to your savings plan?
What about your annual raise? Instead of extra dining-out occasions, salon visits or morning coffee orders, commit to putting that increased percent into your savings plan. Remember, this is money you haven't become accustomed to. Remain living on your existing income so that this new amount is used to build your savings plan.
Think about how either of these situations will help you be closer to achieving your financial goals.
2. Tax Refund
It is that time of year when some individuals will receive a tax refund. Instead of purchasing unnecessary items, commit to putting the refund into your savings plan. Again, this is money that you are not accustomed to.
Some tax payers receive sizable tax refunds. This amount will definitely help to jump-start your savings plan. This amount can represent a large portion of your annual financial goal.
3. Direct Deposit
Most employers allow you to have your pay check deposited directly into your bank account. In most cases, you have an option to deposit your check into multiple accounts. If this is the case, set up a separate savings plan and designate a specific amount to be directly deposited each pay period. A savings plan that is established at a different financial institution than your checking account is recommended. If it is inconvenient to access the funds, you are more likely to leave the money in the savings plan and allow the funds to grow.
4. Automatic Withdrawal
Your current bank will allow you to set up an automatic withdrawal from your checking account and deposit the funds into your savings plan. You can manually transfer the funds from your checking account to your savings plan; however, if the transfer is done automatically you do not have to remember to complete the task. Setting the withdrawal up automatically, following the date of your direct deposit, will eliminate the temptation of you spending the funds unnecessarily. Also, the automatic withdrawal will allow your savings plan to grow without you consistently thinking about it. Have you heard of the saying, "Out of sight, out of mind?" That is exactly what happens with the funds that are automatically withdrawn from your checking and deposited to your savings plan. The funds are out of sight, out of mind.
5. Additional Income
Capitalizing on your talents is a brilliant way to jump-start your savings plan. Think about your hobbies, talents or special skills to start earning additional income. That income can be deposited directly into your savings plan. In some cases, your hobbies, talents or special skills may start to earn you higher income that your job.
Finding ways to achieve your financial goals do not have to be difficult. All or any of these ideas can help you in reaching your financial goals for 2016.
Let's make it happen!
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Increasing Financial Awareness and Building Financial Stability