Money / Financial Planning
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A sum of $20,000 sitting in your savings account could provide months of financial security should you need it. After all, experts recommend building an emergency fund equal to 3-6 months worth of expenses. However, saving $20K may seem like a lofty goal, even with a timetable of five years.
See: 7 Fastest Ways To Save $20K, According To Experts
Find: 6 Top Tips for How To Turn $1,000 Into $10,000
The truth is that even if you think you don’t have money to set aside for this type of savings goal, you likely do — you just have to know where to look. However, if you find you don’t have the extra money in your budget to save, there’s still hope. Don’t worry either — with a five-year timeline, there’s no need to restrict your discretionary spending to the point where you’re miserable.
To help you get started, here’s some solid savings advice from the experts that anyone can easily apply to meet their $20K savings goal in five years — and gain financial security.
Track Your Expenses To Find Money You Can Save
“I take my coaching clients through a process of tracking and examining where all of their money is going,” said Katie Jones, a professional money coach for young professionals at Agape Investing.
“Through this process, about 90% of my clients can immediately identify around five things that they can either reduce or completely eliminate from their spending. In some cases, I have had clients find over $800 in savings per month without needing to increase their income. It is a super easy process that can lead to great amounts of savings!”
Learn: Where and When To Shop To Save Money on Clothes
Open a Separate Account, Name It, and Set a Deadline
“Open up a separate savings account that’s just meant for the $20K, and name it so that whenever you check your accounts online, you’ll see the name and remember what your aim is,” said consumer analyst Julie Ramhold with DealNews. “Then, set a deadline — on your phone, your computer, whatever — with a reminder. Set a long-term countdown if you want. Either way, make sure that you’ll have a clear picture at any given time of how your goal is progressing as well as how much time is left to achieve it.”
Ramhold continued, “By putting it into this perspective, you’ll be able to stay on track with your savings, and seeing the progress will make it easier to stick to your strategy.”
Spending the money you’re putting toward your savings goal …….