Author: Chelsea Culp

Are you working on your New Year’s resolutions? If so, you’re one of just over 60 percent of Americans who do so. The fact is that only 8 percent of people are actually successful in achieving their resolution, but people who explicitly make resolutions are 10 times – yes, 10 times – more likely to attain their goals than people who don’t.

What is it about resolutions that makes them so hard to keep? In most cases, people who make resolutions often approach them the way many of us look at savings goals: I want to save money, but “a goal without a plan is just a wish.” (Antoine de Saint-Exupery)

This year, let’s take the SMART approach to New Year’s resolutions:

Give me an “S”
This year your resolution is to save money. Great! But how do you get there? How much do you want to save? How often? For what purpose? By when? Get specific. It will help you create that all-too-important road map for the coming year. An example of a specific goal could be to save three-months’ salary in an emergency fund by the end of the year. Already you’ve gotten specific about how much you want to save, for what purpose, and by what deadline.

Let’s hear it for “M” 
The steps you’ve taken in making your goal more specific have already made it easier to measure. To know what your total savings amount will be, you’ll need to calculate what three-month’s salary equals for you. You’ll also want to measure how often you’ll contribute to your savings goal and how much each contribution will be. You’ll be able to say: “I’m going to save three-months’ salary in an emergency fund by the end of the year by saving X dollars, X times per month.”

Can I buy a vowel? “A!”
Creating a plan with actionable steps and benchmarks for success help to give your resolution momentum. Your first actionable step in saving money could be to set up automatic contributions to your savings account. You can do this by talking to your work’s HR representative about splitting your direct deposit each pay period or by contacting your financial institution to set up automated deposits in a time frame of your choosing.

Already you’ve made tangible progress. Feels good, doesn’t it? Don’t forget to celebrate your achievement – particularly in a way that doesn’t jeopardize your savings goal, of course – and use the time that follows to set up your next actionable step.

How about an “R”
Make sure your goal is realistic. It might be achievable for you to save three-month’s salary this year, but is it realistic when you consider your lifestyle and priorities? Don’t ignore any responsibilities or people in your life that rely on the resources you’re dedicating to this savings goal. Instead, look closely at your income and expenses, then analyze what you may be giving up to reach your savings resolution. Will you be happy making any sacrifices in order to reach your goal?

The first step to efficiently assessing your cash flow is creating a budget. No matter how you choose to establish your budget (e.g. app, Excel, old school pen and paper), it’s important that you find a system that works for you and that you stick to it! Not sure where to start? Try our Budget Worksheet.

Give me a “T”
Great goals are also time-limited. A New Year’s resolution already provides you with a deadline to complete your goal: December 31, 2017. Don’t stop there! Put a time limit on your smaller benchmark goals. Deadlines along the way will help to keep your goal from getting lost or overtaken by day-to-day responsibilities. By breaking down big steps into progressively smaller ones, you can create a sense of urgency to your resolution by breaking down your year’s goal into monthly, weekly, or even daily steps.

I’d like to solve the puzzle, Pat
Don’t let another year of failed New Year’s resolutions go by. Turn this year’s wish into a thoughtful and well-planned goal by taking the SMART approach. We know that having a plan with specific goals helps people save more effectively, but it all starts when you make a commitment to yourself to save.

Let America Saves help! Take the first step today and take the America Saves pledge to save money, reduce debt, and build wealth over time. America Saves will keep you motivated with information, tips, and reminders to help you reach your savings goal. Think of us as your own personal support system.

TAKE THE AMERICA SAVES PLEDGE

The holidays are underway, but that doesn’t mean that shopping is yet complete. Unfortunately, it does mean that there are still opportunities for your identity and your financial information to be compromised.

Technology has improved over the years to help shoppers protect themselves, but the onus is still on you to take precautions against scams and hacks that are even smarter than the protections we have going for us.

Here are five ways you can continue to protect yourself this holiday season:

1. Stay informed

   Whether you choose to get your news online or on a TV, large-scale data breaches and hacks often make headlines. Even your favorite personalities will put the spotlight on scams to keep your eyes out for. Don’t forget to bookmark resources like IdentityTheftCenter.org that can also keep you up to speed on the latest privacy alerts.

2. Be situationally aware

   If you know your hands are going to be full of shopping bags when you’re done, try to keep the items you carry with you to a minimum. Not only will this help you to keep tabs on your belongings and avoid pickpocketing, but will make it easier for you to keep an eye out for shoulder-surfers who try to take a picture or write down your credit card information from behind hoping to walk away with your debit card information and pin number.

3. Be smart on your smartphone

   Smartphones put shopping, banking, and stored information at our fingertips, but that also makes that data much easier to steal. Make sure that safeguards are in place on your phone in case it is lost or stolen, such as auto-lock or passcode protection. Try not to stay logged in to your banking or favorite shopping sites and remember that the password-saving functions make your account as easily accessible to someone else as they become to you.

4. Safety first online

   An incredible amount of personal information is shared – and often stored – during online transactions. Be aware first of the URL you’re visiting; look for “https:” rather than “http:” when you get to your shopping cart, as the “s” indicates a level of online security. Consider using your credit card rather than debit card for online purchases because the consumer protections in place often make fraudulent charges easier to dispute and results in fewer of your hard-earned dollars lost if something does go wrong.

5. Be mindful of your accounts

   It starts with saving receipts. Knowing where your money went during your shopping adventures is key, but making sure that the activity on your statements lines up is equally as important. Identity thieves will often make small dollar purchases to test out a card before purchasing a computer or big screen TV on your dime. By checking in on your accounts, you can be aware of any fraudulent charges while also keep your budget in check.

Data breaches and account hacks over the last few years have taught consumers – often the hard way – about the importance of protecting themselves. If you think that your information has been compromised in any way, contact your card issuer and/or bank at the first indication of any unauthorized or suspicious charges. In the event of suspected identity theft, you can also place a 90-day fraud alert on your credit report with the three major credit bureaus: Experian, TransUnion, and Equifax.

For more information on how to report and recover from identity theft, check out this helpful step-by-step guide from the Federal Trade Commission.

Need motivation to stick to your holiday savings goals? Let America Saves help! It all starts when you make a commitment to yourself to save. Take the first step today and take the America Saves pledge to save money, reduce debt, and build wealth over time. And it doesn’t stop there. America Saves will keep you motivated with information, advice, tips, and reminders to help you reach your savings goal. Think of us as your own personal support system.

Written by Tammy G Bruzon, America Saves at americasaves.org

Holidays are often an exciting time of the year. Spending time with family, enjoying time off work, and celebrating with family traditions are enjoyable activities. However, the holidays can also represent added stress due to the crunch on your wallet.

It is hard to look forward to a holiday if you are worrying about how to pay for it. Have you stressed about how to provide a fun experience for children without breaking the bank? Decorations, gifts, and food expenses add up quickly.

When thinking about expensive holidays, people often think of Christmas. However, many other holidays can be expensive as well. For example, Halloween is the third most expensive holiday, after Christmas and Valentine’s Day. Although Halloween does not involve large gifts or family events, the costs of costumes, candy, and decorations can require big spending. To avoid this financial strain, it is important to plan for holiday expenses throughout the year and to adopt new, lower-cost traditions.

Develop a Budget for Upcoming Holidays

One way to reduce impulsive spending is to develop a budget that includes clear expectations for travel, food, entertainment, and gift-giving expenses.

• Make a list of everyone who will receive a gift as well as all items that will cost money during the holiday season. Some items often forgotten include gasoline, babysitter fees, eating at restaurants more often, and so on.
• Some people enjoy giving gifts to non-family members, but they are often forgotten when making a budget. These people include teachers, babysitters, hair stylists, etc. Consider writing handwritten notes expressing thanks or appreciation rather than buying gifts when possible to reduce your spending costs.
• Divide the list into necessary items (needs) and extra opportunities (wants). For example, gasoline is a needed expense for traveling while eating out at restaurants while on the road is an extra expense that can be avoided if needed. Dividing your list will help you save for all necessary expenses and provide a list of ideas in case extra money is left over.
• As part of your budget, determine how you will pay for each item. Paying with cash will help avoid unexpected spending. Paying with a credit card without keeping track of spending may cause you to forget purchases for which you’ll have to pay later. If paying with layaway, look out for hidden fees and be sure to budget for any interest added.
• Carry a copy of your budget with you, and be sure to follow it while in stores. Once a budget is made, it can still be hard to follow. In-store sales are tempting, but making impulsive purchases, no matter how small, can add up quickly.
• Plan your shopping trips ahead of time by reviewing store ads for upcoming sales. This step will lower costs while also helping to reduce impulsive decisions while in the store.

It can be helpful to budget for holidays that occur together. Several holidays occur during October, November, and December, leaving little time for budgeting. Combining holiday expenses for all three holidays together can make sure that you are not caught off guard.

Consider the following tips for upcoming holidays:

Thanksgiving

• Cooking an entire Thanksgiving meal on your own can be expensive. Consider having a potluck with friends and family to avoid cooking or paying for the entire meal yourself.
• Plan for meals ahead of time to take advantage of coupons and grocery deals. Coupons and advertisements about upcoming sales can be found online and in local newspapers.
• Using in-season produce for recipes can often reduce food costs. For example, sweet potatoes and fall squash are often on sale during the Thanksgiving season.
• Reduce travel expenses by visiting out-of-town families for one holiday during the winter season (such as just Thanksgiving or only Christmas, rather than both holidays).

Christmas and Hanukkah

• When making a budget, decide what you will spend on each person before going shopping.  If possible, talk with family members and friends to set a spending limit that everyone can spend on each gift.
• Consider setting up new holiday traditions that cost less. For example, some families or friend groups use “Secret Santa,” where each person draws a name randomly so that each person receives a gift and each person only buys a gift for one person
• Consider spending time together rather than gift-giving. Other ideas include a nice dinner out or playing games as a group.

By Laura M. Frey, LMFT, Ph.D. Candidate, Department of Family Sciences, University of Kentucky and Jennifer Hunter, Ph.D., University of Kentucky Family Finance Extension Specialist. From America Saves; americasaves.org