Your savings account may seem like one of the things in life that doesn’t require any maintenance once it is set up, outside of the automatic deposit you make every pay period. However, for your savings to be effective you need to reevaluate it with the occasional check-up.
While you might start with double-checking the balance, there are a few other factors to consider:
- Savings-to-expenses ratio – How far would your savings last if it was your only source of money for an extended period of time?
- Upcoming lifestyle changes – If you know change is coming, think about what it might look like. Things like graduation may bring more money, but you’ll also have a lot of costs you need to prepare for before that first real paycheck arrives.
- Debt – Not all debt is equal. There are times when you will want to prioritize paying down your debt rather than saving everything you can for the future.
Whether you feel like your savings is currently adequate or are worried about the future, the first step in assessing your savings is to use the tool at America Saves Week’s website to help determine what you are doing well, and what can be done to help.
Once you have taken a look at your savings in context of your life, you can begin to decide what actions you need to take – if any. The tool also recommends habits that you can pick up in order to make positive progress.
Now that you know where your savings stand, you can create goals to work toward. Maybe you want to have 6 months of expenses saved up because of a pending life change? Perhaps you just want to be ready for any emergencies that might come along for yourself, a pet, or vehicle? You could even be thinking about your future and start saving toward your retirement.
If you are still at square one and haven’t started saving yet (or even if you have and want to recommit to saving), take a moment to take the America Saves Pledge. Just by making the pledge you’re committing to yourself a promise to save, and increasing your likelihood of success!
Whichever reason you choose to save, having a clear goal will help you stay focused and ultimately be more successful!