Whether you’re dreaming of a relaxing vacation, planning to upgrade your appliances, or saving for a new car, setting money aside for a purchase that is a significant expense and is not usually included in a budget requires careful planning. Here are a few tips to help you save efficiently and reach your goal.

Define Your Goal

Start with clarifying the basics. Know what you are saving for, how much it will cost, and when you’d like to purchase the item or experience. For example, if you’re planning a vacation, include expenses like travel, accommodation, meals, and activities. Being specific gives you a clear savings target.

Set a Realistic Budget

Once you know the cost, evaluate your current finances. How much can you set aside each month without disrupting your ability to pay bills or manage day-to-day expenses? For example, if your goal is to save $2,400 in one year, you’ll need to save $200 per month over 12 months. Adjust your timeline or budget if this feels unmanageable.

Cut Back on Non-Essentials

Identify areas where you can trim your spending: skip a few takeout meals, cancel subscriptions, etc.

Look for Extra Income

If your budget feels tight, explore opportunities to earn more: sell gently used items, pick up freelance work, etc.

Open a Dedicated Savings Account

Consider opening a savings account specifically for your goal. This keeps your funds separate and makes it easier to avoid dipping into those savings. Many banks also allow you to nickname accounts, so you can label it “Vacation Fund” or “New Car Savings” for added motivation.

Track Your Progress

Regularly monitor your savings to stay motivated. Many banking apps let you track your goals visually.

Automate Your Savings

Automating transfers from your checking to savings account is one of the easiest ways to stay on track.

Reward Yourself Along the Way

Celebrate milestones to stay motivated to save. For example, once you’ve saved 25%, treat yourself to a small indulgence – without derailing your progress.