Most people can agree that saving money is somewhere on their 2024 New Year’s resolution list. Yet, concerns about inflation may have you wondering if saving is a realistic goal. No matter where you are on your financial journey, if saving is an important goal, these universal best practices can help you save while battling inflation.
Generational differences can be found in music taste, clothing style, and life experiences. But one commonality they share is the need to save. No matter what generation you’re in, we can all agree that this is a tough economy for saving. While each generation has a different reason to save, each is faced with their own unique challenges for reaching their savings goal.
In a recent survey conducted by American Express, 59% of Millennials and Gen Z'ers have goals to increase their savings, 33% want to build an emergency fund, and 29% plan to invest more. Coupled with increased financial burdens brought on by student loan debt, rising interest rates, inflation, and other financial crises, many young Americans have a strong reason as to why saving is top of mind in 2024.
Gen Xers (also known as the “sandwich” generation) are in a unique financial situation. They’re called the sandwich generation because they’re in between financial responsibility of two groups – caring for elderly parents and supporting their children. According to this Bankrate survey, 58% say they sacrificed their emergency savings to help their adult children. Between managing day-to-day expenses, saving for retirement, and paying down debt, Gen Xers’ financial goals are in heavy competition with one another.
By the end of this year, Boomers will be nearing retirement age, and most are worried that they aren’t financially prepared to yet retire. According to this article from Kiplinger, 70% of this generation are unsure whether their savings is enough to support retirement. To add to this, roughly 27% of people over the age of 59 have no retirement savings at all.
With a bit of dedication, anything is possible – even when it comes to achieving financial goals in a tough economy. While you can’t control the cost of goods, you can control your financial behaviors. The key is making sure you’re equipped with the right tools and know-how to adjust your financial patterns.
Whether you’re looking for ways to trim debt, grow your retirement, or rebuild your emergency savings, the first step starts with a budget. The process begins by taking a close look at what you spend every month, from regular, recurring expenses such as rent or mortgage, utilities, and insurance, to nonessentials like entertainment and travel. A budget creates the foundation to better understand your cash flow. Once you’ve gained a better understanding of this, you can strengthen your saving practices by making subtle adjustments to nonessential spending.
With our “3 Practical Budget Templates that Work” template, simply pair one of the budget styles to what fits your needs best and use it to strengthen the footing on your financial goals. Budgets are meant to give you a clear picture of how much you’re spending and how it compares to your income. By doing so, you may find new ways of reducing expenses and increasing savings for your long-term goals.
Having a savings goal is typically a good financial practice, but it doesn’t do much good if it’s a goal you can’t reach. Changing the way you think about saving money is the first step toward growing your savings.
Paying yourself first is easier said than done. That’s because when it comes to disbursing money, putting it into a Savings Account for ourselves is usually the last place we’d consider. Simplify the way you think about saving by setting up an automatic transfer or direct deposit into a high-yield Savings Account every time you get paid. Start small with $20 or $25 dollars each pay day and as your comfort level grows, you can increase the amount.
52 Week Money Challenge: For a way to help you save over $1,300 in one year, check out our 52 Week Money Challenge template and guide.
Another easy and smart way to save is enrolling in our Visa Debit Card Round Up program. Each purchase you make with your Visa Debit Card will be rounded up to the nearest dollar. These excess funds will be transferred to your Round Up Savings Account overnight.1 It’s just like putting your extra change in a jar!
Whether saving for a rainy day or for a big purchase like a home, choosing the right Savings Account matters. Take advantage of our high-yield savings options like a Term Share Certificate (or CD) or Money Market Account to help you reach your 2024 savings goals. No matter where you are on your savings journey, Peach State is here to help you succeed in achieving your New Year’s saving resolution. Contact us today
1 A separate club account will automatically be opened when signing up for and using the Visa Debit Card Round Up program.