How to Change Your Savings Habits in the New Year

It's a new year and we're willing to bet that some of you are wanting to get your finances in order in 2023. You're not alone. According to WalletHub, about one in three people surveyed said they planned on making New Year's resolutions focused on spending less. Luckily for you, Vectra Bank is here to support our communities in reaching their monetary goals. Here are some of our best tips to boost your savings and better your habits for the year to come.

1. Set goals

The first thing you need to do when setting yourself up for success financially is to create some goals so you will have something to work towards throughout the year. Make these goals something that is achievable or break down a larger goal is smaller steps that make it simpler to tackle. You want to feel accomplished, not overwhelmed and discouraged. Here are some easy examples of goals that can help you get started:

• Save $300 per paycheck.
• Contribute $100 per paycheck to your retirement account.
• Save $3,000 by March.
• Lessen spending by $200 each month.

If these goals are too easy, you can boost them to something a little more difficult after the fact. Sometimes, speaking with a financial advisor can help you determine what would be an achievable goal.

2. Be specific

When it comes to changing your savings habits, it's best to determine what needs to change and be specific about how to do it. This leaves less room for confusion and makes your habit-changing strategy more effective. Give yourself actionable steps that are supported with rewards. Getting into the specifics is important. For example:

• A specific and helpful goal: Spend less than $200 on entertainment every month.
• A non-specific and vague goal: Stop spending so much on entertainment.

As you can see, the second example leaves room for questions and uncertainties. The first question, however, gives an amount you want to save and a timeline to do so.

3. Use your bank to your advantage

If you aren't sure where to begin, a good place to start is by speaking with your banker or financial advisor. You could find a new bank account that makes saving money easier or learn a new way to divert your money into savings accounts to boost your nest egg. At Vectra Bank, we have a variety of ways to support your new savings habits. Here are some services you can learn more about:

• Young Savers
• Money Market
• Certificates of Deposit
• IRA Money Market
• IRA CD
• College Savings Plans

If you have any questions, your banker is ready with the answers regardless of what your goals are. Are you ready to become a better saver in the new year? We are here to support you on your way to achieving them. Reach out to Vectra Bank today to get started.