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5 Ways to Save for Your Dream
Pursuing a dream is hard work. Whether it’s finding the time, support, ambition or funds, dreams require an arsenal of tools and support to put them within reach. If you’re dreaming of an exotic getaway, brand new car or going back to school, saving up is a huge component of putting that dream into drive. That’s where these tips can help.
Record your expenses. The first step in setting up your dream fund? Figuring out where your money is currently going. Write down all your expenses and purchases for a month in a journal — or make it easy with an app like Mint or YNAB. Seeing the amount of money you spend in a day can be a real eye-opener. Once you have an understanding of where your money is going, you can begin to find areas that can be downsized to make room for your dream!
Rethink the extras. Once you’ve got a grasp on what you’re spending your money on, you can assess whether those are really your financial priorities. Look for ways to cut back your spending on non-essentials. Rethink simple habits like grabbing a morning coffee, opting to buy lunch instead of bringing it from home and paying full price for clothes. They may not seem like a big deal in the short-term, but they definitely add up over time. Make simple changes and instead, put the $3.95 you would’ve spent on a chai latte towards your dream fund.
Create a budget. It’s easy to say you’re saving up for you dream, but actually committing to that goal is another story. A great place to start is setting aside a time at the beginning of each month to budget out all of your big expenses — think mortgage or rent, student loans, utility bills, car payments, etc. Next, factor in non-negotiable expenses like gas and grocery bills. The money you have left over is up to you — do you spend it on a shopping spree, fancy dinner or stash it away in your dream fund? Every month you stick to your budget is another month closer to achieving your dream!
Make it automatic. While squirreling away cash in a vacation jar is certainly a good idea, it can often get pushed aside, forgotten, or worse — used for something else. Upgrade your savings strategy by opening a special savings account that links to your checking account. That way, you can set up automatic weekly or monthly transfers to your account without a second thought. Be sure to factor it into your budget as a non-negotiable expense — that way you’ll always be contributing to your dream without having to make it a conscious effort.
Find a second income. We get it, not many dreamers have time for a second (or third or fourth) job. However, when trying to create another source of income, it’s best to think outside of the box. Are you a champion crafter? Put a price tag on your wares and sell them to friends and family, or start an online shop. Before you toss out old clothes and furniture, evaluate their condition and bring them to a consignment shop instead. Tutors are in demand, so if you’ve got the smarts, check out opportunities in your area. Assess the clutter situation in your house and embrace minimalism, then hold a giant yard sale. The possibilities are endless — it just takes a little creativity!
By incorporating even a few of these tips into your savings strategy, you can grow your funds and empower the path to your dreams. Don’t forget to reward yourself along the way — you deserve it.
Related Topics: Career , Passions , Family