Creating a savings plan is essential for reaching your financial goals, whether they are short-term or long-term. Michael Liersch, Head of Advice and Planning at Wells Fargo, provides valuable tips on how to create a savings plan that will stick. One important tip is to start small by setting achievable and specific goals. By setting aside a small amount of money each week, you can gradually increase your savings and stay motivated to reach your goals. Liersch emphasizes the importance of tracking your progress either on paper, through a mobile app, or using a custom spreadsheet to help you stay accountable.
Additionally, Liersch suggests getting support from others to help you stick with your savings goals. In a recent Wells Fargo Money Study, it was found that nearly half of Americans said their family has helped them improve their approach to money. Having someone to hold you accountable and celebrate your wins with you can make a big difference in staying on track with your goals. Liersch also recommends rewarding yourself when you meet your savings goals instead of focusing on feelings of restriction and deprivation. By being intentional with your money and allowing yourself to indulge in small rewards, you can create a positive savings mindset that will help you stay motivated in the long run.
Another key tip from Liersch is to prioritize your goals and be clear on what you are saving for. Many people struggle with choosing which goal to focus on, but by naming and describing each goal and understanding what they mean to you, you can prioritize what is most important. Liersch suggests giving regular attention to all your goals, even the lower priority ones, to keep them top of mind and make some progress towards them. By dedicating money to essential goals first and then allocating what’s left to discretionary goals with regularity and consistency, you can stay focused and intentional in reaching your financial goals.
Overall, saving for goals, especially large or long-term ones, can feel overwhelming, but by following these tips from Liersch, you can create a savings plan that is manageable, realistic, and long-lasting. Starting small, staying accountable, setting rewards, and prioritizing your goals are all key steps in creating a successful savings plan. With the right strategies and mindset, you can overcome the challenge of sticking to your savings plan and achieve your financial goals in the long run. By taking a proactive approach to your finances and seeking support from others, you can set yourself up for financial success and build a secure future for yourself and your loved ones.
