Money / Financial Planning
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When it comes to saving $20,000, it’s unlikely that one financial move is going to help you achieve that goal in a short amount of time. For instance, you could finally work up the courage to ask your boss for that raise you deserve, but even if your raise equaled an extra $500 each month it would take you more than three years to get to $20K.
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In other words, you’re going to have to do various things to reach your goal faster, and the quicker you want to reach that savings balance, the more things you’ll need to do.
Here are some of the fastest ways you can save $20K, according to personal finance experts.
Start With Your Goal
Jay Zigmont, Ph.D., CFP(r) and founder of Live, Learn, Plan, said to ask yourself why you want to save $20K. “If it is for a specific goal (such as a down payment on a house or a car), make sure you both literally and figuratively have a picture of that goal,” he said. “You need to keep that goal at the forefront. It sounds corny, but hang photos of it in your house, make it your phone wallpaper and know what you are working toward.”
Zigmont also advised setting a SMART goal, which stands for Specific, Measurable, Attainable, Related and Timed. “If you decide you are going to get to your goal in the next 10 months, then break it down by month and week (e.g., saving $20k in 10 months is $2,000 per month or $500 per week),” he said.
Read More: 50 Terrible Ways To Try and Save Money
Create a Budget and See What You Can Save
“As with any savings goal, the best way to save $20,000 is to create a monthly budget based on existing income and expenses,” said David Frederick, the director of client success and advice at First Bank. Frederick said once you’ve created your budget, you should determine how much surplus you have available to save.
Learn: 19 Effective Ways To Tackle Your Budget
Open a Savings Account and Set Up Automatic Contributions
“Have the savings contribution drafted electronically into your savings account before you can spend it,” said Gene McManus, CPA, CFP(r), partner at AP Wealth Management. McManus said that even though it may seem like painful deprivation at first, it will get easier as you get used to not having those funds to spend.</…….
Source: https://www.gobankingrates.com/money/financial-planning/fastest-ways-to-save-20k-expert-advice/
