3 Ways to Fall Back in Love with Your Savings

Love is in the air each year around Valentine’s Day.

A great way to show some love to yourself and your finances this Valentine’s season is by refocusing on your savings. A recent WSFS Bank Money Trends study found that 38% in the region are spending more money now compared to last year, while only 21% in the region are saving more.

Here are three ways for you to fall back in love with your savings.

Rekindle Your Love of Budgeting

A good starting point is to ensure you have a budget in place – there are a variety of methods so find the one that works for your needs – and leveraging online and mobile banking to stay on top of it.

Set short- and long-term goals for your budgeting so you can gauge your progress and try to anticipate major expenses – like a new roof for your home – in advance so you have time to save.

You’ll also want to take into account any debt you may have and the regular payments associated with it. Although interest rates are elevated, depending upon the rate you’re currently paying, consolidating your debt using a home equity line of credit (HELOC), personal loan or other method could help you make a dent in the principle and lower your overall payments.

If your budget still has extra wiggle room, set up passive savings to be direct deposited from your paycheck into an account that is separate from the one used for daily purchases. And don’t forget to regularly revisit your budget and resist the urge to “set it and forget it” to avoid falling into a deficit.

Break Up with Unneeded Expenses

Once your budget is set, look for areas to make cuts, like unused or underused streaming services. Many platforms have cracked down on password sharing while also increasing the subscription cost in recent years. Revisit your needs to see if cutting the cord is worth it for you or if you should limit your subscription services.

The start of the year is a time when many consumers get back into a workout routine, but if you find you’re not using your gym membership, consider cancelling it and exercising at home.

Valentine’s Day also brings with it added expenses like gifts, flowers and fancy dinners. If your budget is too tight, opt for gifts and meals you can make together with your loved one.

If you haven’t reevaluated your regular monthly expenses recently like gas, electric, internet and insurance, consider negotiating cheaper rates or switching to an alternative provider.

Build Toward Your Future

While elevated interest rates make borrowing more expensive, it also provides an opportunity to grow your savings with tools like certificates of deposit (CDs), money markets and high-yield money markets.

These accounts typically offer a higher interest rate than standard savings accounts and can provide an opportunity to grow your nest egg.

With a CD, you won’t have access to your funds during the CD term, but money markets can provide a bit more flexibility.

Wherever you find yourself in your savings journey, speaking with your local banker can be a great way to put a plan in place and evaluate the options that work best for your unique situation.