Small savings goals can help build momentum, study finds

(InvestigateTV) — Having a direction for savings is important, according to a NerdWallet study that found people who have a savings goal saved more than those who did not.

NerdWallet Lead Wealth Writer Kate Ashford said the study found 75 percent of people with a money goal are saving money regularly.

“The goals don’t have to be big; you can really start as small as you’re comfortable with because I know people are finding saving a little hard right now. It could be $10 a week. It could be $100 a month, you can automate that,” Ashford said. “You can set up an automatic transfer from your checking account to your savings account make it happen without you having to make that decision every month or every week.”

She said savings can build over time, and that momentum can help people gain confidence about their budget.

“If you have a little bit of money here and there, it’s never too little to save. There are apps out there that will round up your purchases to the next dollar and put that money away in a savings account. You can decide you’re going to save rebates or your tax refund or just extra money that you find, that will go to savings. Just look for the little things you can put away. Time is on your side, and it really will add up,” Ashford said.

She said tracking savings does not have to take as much time as some people may think. Checking in once a week or once a month can help people understand where they are and stay on track.