Is there a special occasion coming up in your life? Maybe it’s a big vacation, a wedding, a graduation or a family reunion. No matter what special occasion you want to save for, there are several ways you can meet your goal.
One way is to create a special purpose savings account that’s separate from your regular savings account. Another is to use a certificate to help you save money and earn interest for a specific period of time.
Set a goal. Be specific about what you’re saving for and how much you want to save.
Use a visual reminder. Need a reminder to save? Tape up a picture of that dream vacation or purchase.
Make saving a reward, not a punishment. Make deposits when you want to celebrate something instead of splurging on other things.
Find More Room in Your Budget
One way to find more room in your budget is to ask yourself whether a short-term purchase (like going out to dinner with friends or buying a new watch) means as much to you as the special occasion you’re planning for. If the special occasion is your priority, transfer the amount you were thinking about spending to a savings account earmarked for that event.
You could also consider using rewards from a rewards credit card (if you have one) to help cover some of the costs – whether that means using travel points or taking a cash back option. Just be careful: some rewards cards charge higher rates if you don’t pay your balance in full each month, and you’d rather be spending those extra dollars on your special event than on interest charges.
Calculators
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- Monthly retirement income estimator
- Estimate Social Security benefits
- 401(k) savings calculator
- Saving with a traditional 401(k) vs Roth 401(k)
- IRA value at retirement
- How long will my retirement savings last?
