8 tips to achieve multiple savings goals

Financial planning can be tough to wrap your head around. You're paying down student loans, your car needs repairs, and you're dreaming of home ownership — but you also want to take a vacation. It's easy to get overwhelmed when you're living your best life and planning for your future at the same time.

Most of us will always have simultaneous savings goals that compete for a place in our budget. You can reduce the stress of competing financial goals by developing a savings plan. Read on to learn some tips to save for multiple goals at the same time.

1. Be specific

Savings goals work best when you get specific about what you're saving for. Creating a blueprint of specific goals will help you prioritize, track your progress, and keep you accountable. Whether you open a new Excel document or construct a vision board, write down your savings goals — both the goal and amount you'll need to save to meet it. These might include:

• Create emergency fund of 3 months of expenses
• Save for a 10 or 20% down payment on a house
• Save for new dishwasher
• Contribute 10% of paycheck to a retirement account

2. Stick to a timeline

Now that you know what you're saving for, it's time to determine how long each goal will take. Depending on time horizons, you may need different savings plans based on things like risk and return on investment.

Some of your goals will be short-term, like next year's vacation. Others will fall into mid-range or long-term goals. For example:

• Short-term (less than 1 year): Vacation, new appliance or beefing up an emergency fund
• Midterm (1-5 years): Paying off student loans, saving for a wedding or saving for a down payment on a house
• Long-term (5-20+ years): Saving for retirement, putting money aside for your preschooler's college or saving for a large purchase like a vacation home

To simplify, set benchmarks or smaller goals, like saving $50,000 by age 30. Then break down that goal into manageable chunks. Categorizing goals by timeframe also helps you determine the best type of savings tool for each.

3. Go one month at a time

Just like writing down your savings goals, breaking goals into bite-sized chunks gives you a clear roadmap for how much to save each week or month. Make saving measurable and concrete, prioritizing the most important goals first and then reprioritizing as you meet them.

For example, if you want to create an emergency fund of $3,000 in 18 months, calculate how much you need to save each week or month. Dividing $3,000 by 18, you'll find you need to save roughly $166 per month or $41 per week. Once you know the dollar amount, you can start exploring your budget.

4. Use more than one savings tool

Now that you have a plan in mind, you'll want to choose the right savings tools. Multiple savings accounts can be a great way to organize different savings goals, depending on their time horizon.

Savings tools go beyond simple savings accounts. Below are a few options that you can use to help you reach your goals:

• Savings account: A safe option that allows you to withdraw money at any time. The interest rate is usually low compared to other interest-earning financial tools.
• High-interest or high-yield savings accounts or checking accounts: Typically offering higher interest rates than regular savings or money market accounts, these accounts are generally available through online banks and credit unions. They often come with certain financial criteria that may include a high balance and required monthly direct deposits.
• Money market account: Another lower-risk option, this high-interest deposit account may grow your money more quickly while avoiding unsecured market investments.
• Certificate of deposit (CD): A good "set it and forget it" option, a CD offers a consistent interest rate above a standard savings or high-interest checking account. CDs come with varying maturity dates, from three months to five years, so you need to commit funds through the date you choose.
• IRA: Designed specifically for retirement savings, IRAs offer tax advantages. Two basic types are the traditional and Roth that come with contribution limits.
• 401(k): Offered by your employer, this retirement plan withdraws pre-tax funds from your paycheck and invests on your behalf. Some companies match your contributions.

Each savings strategy has pros and cons, depending on what you're saving for. Before making a decision, talk to an experienced financial advisor to help you make the best choices for your unique situation.

Bonus tip: Leverage digital savings tools like Citizens Savings Tracker®¹ available within the mobile app². Features like Smart Save³, Round Ups⁴, and Pay Yourself 1^st make it easier to grow your savings by identifying safe opportunities to save, rounding up everyday purchases and automatically setting aside money from direct deposits.

5. Aim for multiple savings strategies

Finding the money to put toward savings goals can feel like the hardest part of saving. After you analyze your budget and where your money goes, you can figure out what to change. Some tips for finding extra money include:

• Cutting your daily $5 coffee — or maybe reduce to once a week
• Packing lunch for work
• Reviewing subscriptions and eliminating or putting on hold what you don't use
• Finding a side hustle to earn extra money
• Periodic week-long spending freeze (outside of fixed expenses)

6. Automate it

Some savings goals lend themselves well to automation, which can take the sting out of saving. It's hard to miss what you don't see. For example, saving in your 401(k) for retirement deducts the money from your paycheck before it lands in your bank account. Setting up automatic transfers to an account reduces spending temptations.

7. Track your progress

Watching your savings progress can be highly motivating. You may be using several savings accounts for various saving goals. Track your savings with Citizens Savings Tracker®, an old-fashioned spreadsheet, like Excel, or a printable tracker you can post somewhere like your fridge.

Limiting your fluctuating account — your monthly spending — to one account will make budgeting easier. You can more easily monitor your inflow and outflow each month.

8. Reward yourself

Of course, only focusing on saving and not spending can get old. Don't forget to celebrate your wins and spend a little money on yourself as a reward — just don't let your treat set you back financially. For instance, plan a treat like $50 concert tickets for paying off your last $5,000 in student loans in six months or eliminating your high-interest credit card debt.

Build your savings with ease

Ready to turn your financial goals into reality? A Citizens savings account is a smart way to build your savings effortlessly. With automatic transfers from your checking account, you can consistently set money aside – making it easier to stay on track and watch your savings grow over time. Start today and take the next step toward achieving your financial dreams!