Angela Colley
We all know having a healthy savings account matters. With some savings socked away you’ll feel better prepared to handle whatever comes, but growing those savings isn’t always easy.
If you’ve been saving up but still feel like your account isn’t growing like it should, maybe you should look at your goals. If you don’t know what you’re saving for, the money you put away just becomes ‘money in a different account,’ says Emily Guy Birken at Wisebread.
““Without a specific goal in mind, it can be difficult to get psyched about the money in your savings account. Yes, it’s great that you have several hundred (or several thousand) dollars sitting in a savings account, but it can feel like having an auxiliary checking account if you don’t have a specific purpose in mind for the money. And not having a goal for your money makes it much easier to raid the account if you find yourself lusting after Coachella tickets.””
And if we don’t care why we’re saving, we probably won’t remain enthusiastic about it for long. Getting specific can help.
““We are much more likely to feel excited about saving money if we have a specific goal in mind. This is partially due to something known as mental accounting, which is our tendency to value money differently depending on how it is physically and mentally labeled. You might feel no compunction about ‘borrowing’ $400 from your general savings account for a Coachella ticket, but taking that money from your new car fund would hurt.””
To keep your savings on track, you could create a goal and a timeline for reaching that goal. Say, for example, “In a year I’ll have three percent down for a house.” Still need motivation? Most banks will let you name your savings account. Title yours after your goal—House, New Car, Lifetime of Coachella Tickets, or what have you—so you see right where that money is going.
Wondering what else might be slowing your savings? Check out the rest of “4 Easy-to-Fix Reasons Your Savings Account Isn’t Growing” at Wisebread.
