SAN ANTONIO – There are lots of articles and books that show you how people save, and while that advice might work for some, others may want a more personalized savings solution.
Let’s say you want to have money to spend during your summer vacation in Cancun, Mexico. You need $3,000, but you aren't sure how to save for your trip.
The Consumer Financial Protection Bureau has some tips to help you come up with a savings rule to live by to meet your financial goals.
The CFPB says the first step is to set select a savings goal and amount that works for you. You also need to choose the account where you'll be keeping the money.
Since you already have your vacation savings goal of $3,000, let’s say you decided to choose your savings account at your local bank to store the money.
The next step is for you to create a rule by which to live. You must decide how much you can save every week or month.
The CFPB’s savings rule worksheet makes it simple for you to put your plan into action.
Let’s say you have until August to go on vacation. That means you have about six months to save those $3,000.
In your CFPB worksheet you would write down the following statement:
“I will save $500 per month for six months to reach my savings goal.”
The worksheet has a step where you can make a promise to yourself to save the amount you need. While this part is optional, it may help you mentally work toward your savings goal.
Let’s say you signed below the line on the worksheet that reads the following:
"I will use my unique rule to live by to help me achieve my savings goal."
You are now well on your way to saving the money you need for vacation with a simple, personal savings rule.
For more from the CFPB, click here.
Check out the CFPB form below:
“Money: It’s Personal” is a series on KSAT’s News at 9 that breaks down personal finance topics. If you have a suggestion or question on the types of topics you’d like us to explain, email firstname.lastname@example.org.
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