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12/27/2018

4 steps to successful New Year’s savings resolutions

Personal

With the start of 2019 only days away, have you chosen your New Year’s resolution yet? According to our recent Holiday Savings Survey, over half of Millennials (53%) and members of Generation Z (51%) are prioritizing saving in the New Year, more so than other older generations.1 Building up savings can help you achieve many of your goals, from buying a new home to taking a vacation or creating an emergency savings fund. 

Despite good intentions, research says that 80 percent of resolutions fail by the second week of February.2 To make a savings resolution that sticks, take the following four steps. 

  1. Focus on one idea or goal.
    Trying to save money for a bunch of things at once can be overwhelming. First choose just one thing to save for and break it down into several smaller goals. For example, if you’re saving for a house, achieving quarterly or annual goals will help you measure progress toward a goal that could take several years to complete. Commit to saving for at least three months to put yourself on the path to success.
  2. Know you may need to make sacrifices.
    The truth is that saving more means spending less. By planning in advance with a budget, you can keep one step ahead of any obstacles that could derail your progress. Start by making small changes, like packing a lunch instead of buying one during the workday. Avoid putting expenses on a credit card and racking up interest rates that undermine your savings growth.
  3. Be SMART.
    By setting a SMART goal, you can turn an idea into a success story.
    Specific: What exactly are you saving for?
    Measurable: How much will you save per month to hit your goal in a set amount of time? Our savings calculator can help you decide.
    Actionable: How will you contribute to your savings and stay on track?
    Rewarding: What costless reward will you give yourself to recognize key milestones in your journey?
    Trackable: How often will you track your progress?
  4. Find the best method to achieve your savings goal.
    Now that your goal is solidified, choose a savings account that helps you reach it. Savings accounts at your everyday bank typically offer less than 0.1 percent Annual Percentage Yield (APY).3 At an online-only bank like CIT Bank, you could earn up to 20 times more. Once you’ve opened your account, automate your savings so you’re saving money directly from your paychecks before you can spend it. If you receive a raise or bonus, increase your contribution amount to reach your goal even faster.

Feel empowered to keep your savings resolution long past February by opening a Savings Builder account. You can earn the top APY tier by making at least one monthly deposit of $100 or more, or maintaining a minimum balance of $25,000.

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CIT Bank’s new 2018 Holiday Savings Survey reveals that more than half of Gen Z and Millennial U.S. consumers will prioritize savings as a New Year’s resolution, compared to only about a third of Gen X and Boomer generations.

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