It’s March 4,509, 2020, you’re comfortably sitting on your sofa with Netflix on in the background, and scrolling through Amazon for the millionth time. You discover that there’s a new Smart TV that’s on sale and you must have it before the sale goes away. Before you know it, you’re switching over to your banking app to see what your account balance is. Giving that balance a hard look, you think through what bills are coming up, when you’re getting paid, and how badly you want the new Smart TV.
According to the DAC Group, in 2019 88.6% of Americans have purchased on an impulse. Impulse purchases can overshadow opportunity costs and long-term financial goals, like saving for a home down payment or retirement.
These 3 tips can help you better plan and achieve your financial goals.
Set A Goal
Jotting down what you want and when you hope to achieve your goal.
Set Aside Money Each Paycheck
If it’s something you want, as compared to something you need, you can follow the 50/30/20 budget rule. Ideally, your paycheck is allocated in this manner: 50% toward needs, 30% toward wants, and 20% toward debt/savings.
Within your current spending, figure out how much each paycheck you can set aside. Divide the total amount of your goal by what you can save each paycheck to figure out how many paychecks you’ll be saving toward your goal.
Once you get paid, either take the cash out of your bank, set aside in a different bank account, or earmark the money in your personal finance app.
Sit Back and Wait
The financial distractions abound. Saving for financial goals takes patience and persistence. Set aside your money each paycheck and you’ll be able to achieve your financial goal in no time!