Think back on your spending this year so far — did you hit those money goals you scribbled down in January, or did you find some holes in your wallet where cash should have been? How’s your money management approach going looking ahead, even towards to holiday spending season? Or into the following year?
Even the best of us slip up sometimes, missing the mark on our savings or shying away from bigger challenges like beefing up that emergency stash or pumping up retirement funds. Let’s dive into five common slip-ups that might be messing with your money mojo and how you can kick them to the curb.
#1. Budget Like a Boss
A killer budget isn’t just numbers on a spreadsheet — it’s your blueprint to financial finesse, helping you juggle your cash according to what matters most to you. Flying blind without a budget? You’re probably missing out on some golden opportunities to reach your money dreams faster. Haven’t started yet? Now’s your moment. There are heaps of tools and apps out there to help you get your budget together.
- • Pro Tip: Check out apps like Mint or YNAB and get your budget rolling today.
#2. Set Goals that Stick:
Ever heard of SMART goals? It’s not just a buzzword — they’re a game-changer for setting targets that actually mean something. SMART stands for Specific, Measurable, Attainable, Relevant, and Time-bound. Instead of just saying “save for the holidays,” make it a SMART one: “Stash away an extra $400 for next year’s holiday fun by popping $50 each month into a new savings account from March to October.” This way, you’ve got clear steps and a timeline that makes sense.
#3. Watch Those Little Leaks:
It’s the small stuff, like ditching a home-packed lunch for eating out, that can quietly bleed your budget dry. Did you know bringing your lunch could save you around $2,250 a year — that’s a decent chunk of change that could go towards a sweet vacation or slicing down some debt. Keep an eye on these little spends because they add up big time.
- • Pro Tip: Track your daily spending for a month to spot where you can save.
#4. Savvy Saving Account Choices
A lot of folks don’t realize how crucial it is to pick the right kind of savings account. Trying to do everything with one account, or picking one that doesn’t fit your needs, is like wearing shoes that just don’t fit. For daily dealings, a Money Market Account might be your best bet with its higher interest rates. But for the long haul, think about a Certificate of Deposit (CD) for better returns. Need easy access to your cash? A high-yield savings account could be perfect.
- • Next Step: Review your current accounts and adjust them to align with your financial objectives, ensuring flexibility and growth. If you don’t feel comfortable doing this yet, consider chatting with a financial advisor.
#5. Emergency Fund- Your Financial Firefighter
Skipping out on an emergency fund is like leaving your house without an umbrella in storm season — sooner or later, you’re going to get soaked. Those unexpected bills for car fixes or medical mishaps can gobble up your savings fast or worse, dunk you deeper into debt. Start small if you must, but start. Aim to cover three to six months of income eventually.
- • Next Step: Start small if necessary and gradually build this fund to ensure a robust financial buffer.
Keep on Keeping On
If this year’s financial scorecard isn’t as stellar as you hoped, don’t sweat it. Brush off those setbacks, check out the tips above, and get back on track. Remember, your financial health is always a work in progress, and there’s no time like the present to improve it.
LEARN MORE: Explore Synchrony’s Savings Products.
Tamar Satov, based in Toronto, Canada, is a renowned freelance journalist with a specialty in financial writing, offering valuable insights into effective money management.
Source:
1. “The Economics Of Buying Your Lunch Vs. Making Your Lunch," Whole Intent blog, Oct. 8, 2018. https://www.wholeintent.com/blog/economics-buying-lunch-vs-making-lunch
Need to make a payment?
Use the Log In button to find your account login
portal.