Since this is my first blog post, I feel it’s good to show how I save for individual goals. I’ve always found online that people will tell you to save for an emergency fund, a house down payment, etc but then never show you where to save that money. Right now, my emergency fund is pretty much just my savings account. I haven’t bothered to sub divide that account into other accounts, but for everything else I started breaking up my goals into individual accounts. These are all of my smaller goals, but they’re still important in my overall financial journey. This way I could keep track of each individual goal I had. I deposit between $20 and $100 to each goal once or twice a month. This way I can slowly reach my money goals. The website I have been using is SmartyPig (don’t worry, this isn’t sponsored, they don’t know I exist, besides the fact I’ve had an account the last few years). I like SmartyPig because the interest on there accounts is a lot higher than other savings accounts. I make 0.75% interest on the account which is better than the 0.1% most banks give. That being said, when I originally started I was earning 1% so it definitely has been better. I hope one day it’ll go back up to 1%, but we’ll see.
Right now on SmartyPig, I’m saving for my dog’s emergency fund, Christmas gifts, and a vacation. I’m hoping to soon also save for a house down payment, but haven’t decided if I want to do it through SmartyPig or not. Because, like I said, this is for my SMALL goals. Don’t worry, I’ll post about it when I decide.
To create the goals you put down a small initial deposit (I normally do $10) and then SmartyPig gives you the estimated monthly, bi-montly, etc amount of money you need to reach your goal. For example, I want to have $600 saved for Christmas, so that’s about $50 a month or $25 a paycheck. Then, I’ll end the goal in December and use that money to pay for gifts. Avoiding the dreaded Christmas debt!
If you know someone wants a giftcard, you can redeem giftcards and get cash back, but I have yet to use that feature…I like the cash 🙂
Another thing I have yet to try, but should eventually is there debit card. It’s a great way to keep accountable for money if you have problems with credit cards. That being said I love using a credit card for the rewards, so I’ll talk all about that soon.
Having all of my small goals in one place shows me how much more I need to save to get where I want to be. It also helps me budget which is great. When I know where my money’s going I always feel better. You should always be trying to save about 10% of your paycheck for the future. Start small, and that money will grow!
Have you tried SmartyPig?
If you want to be entered into the $20 SmartyPig Giveaway to start saving. Simply leave a comment about what you are saving for now! I will use random.org to make a drawing on May 31st 10PM PST. Good luck to all that enter 🙂