How to save more and reach your financial goals by the end of the year

Over the past few weeks, I have been reflecting on my financial goals, and I am sure I am not only at this table. Two months may not seem like a long time, but rebuilding habits now will make it easier to continue them in 2022. 

With that in mind, here’s what I think we can start planning for the rest of the year.

  1. Rethinking priorities

Let us have a moment to ourselves or set aside a distraction-free evening after work this week to explore your priorities. If you’ve previously written out goals, review them. Then reflect on the past year. What made you feel most anxious, most happy and most relieved? What kept you up at night? These questions will help inform your priorities moving forward.

2. Saving More

Here’s a straightforward activity that can help you start saving a little more: Go through your bank statements for all of 2021 and, from most important to least important, rank the purchases you routinely make that aren’t essential, like a gym membership or streaming service subscription. Then, cut out the expenses that rank at the bottom. This strategy won’t make you a millionaire overnight. If you want to put away more, you need to make more immense sacrifices or find a way to supplement your income. 

3. Make savings automatic

Make your savings automatic by choosing when, how much and where to transfer money. So a portion of every paycheck goes directly into your savings account.

Splitting your direct deposit and setting up automated transfers are simple ways to save money since you don’t have to think about it. It generally reduces the temptation to spend the money instead.