Saving $30,000 is not an easy task. It takes a lot of hard work, sacrifice and of course discipline. So if you’ve managed to save up this kind of cash at you aren’t yet a dinosaur, then I commend you!
Once you’ve saved this amount of money, now it’s time to put your money to work. Some of the things you can do with $30,000 include, store it away in an emergency fund, save it for a down-payment on your first house, invest it for retirement, or spend it on things you need.
Is Having $30,000 In Savings Good?
There is a certain level of financial stability that comes with having $30,000 saved.
Having this sum of money can mean different things to different people and it’s up to you on how you think of it. It could be a reflection of your hard work or it could be a source of happiness as you watch it grow. No matter how you see it though, it is absolutely nothing to balk at!
Aside from achieving the goal of saving this amount of money, it will serve as proof to yourself that no matter what you earn, saving money is not impossible if you put your mind to it.
The list below reviews several reasons why having $30,000 in a savings account is a good idea and why you should start saving now.
- Insurance against job loss
- Pay off debts
- Emergencies (Car Breaks Downs)
- Down payments
- Peace of Mind
In total, saving a large sum of money like $30,000 is good no matter how you look at it or decide to break it down. In an ever-changing financial climate, you must always be prepared for sudden financial changes (6 consequences of not saving money), and starting by hitting a savings goal of $30,000 is great.
Is 30k Enough For Savings?
As a starting point, accruing $30,000 for your savings is a very good place to begin and a great goal to aim for.
The answer to this particular question is $30,000 enough for savings, is really subjective though, one person might feel that the amount is enough and someone else might feel it is not enough.
As a rule, make financial goals that make sense to you and your budget.
Traditionally, savings meant that you were covered for a rainy day. This can still be the case, but these days, savings is used to get a house, a new car, rent a home, and even help to pay off debt.
If $30,000 is your overall goal, then great!
If $30,000 is your first goal and you want to go beyond, well that’s great too! A key takeaway is that having a savings goal means something different to everyone and this is for you to decide and you alone.
Top Tips For Saving $30,000
There are a variety of strategies one could use when it comes to saving money. Unfortunately, there is no magic wand that would allow you to accumulate money in an instant, but with diligence and a bit of planning, it can be easier than you think to reach your money-saving goals.
The following sections will touch on a few handy tips to help you reach a savings goal of $30,000.
1. Budgeting Each Month To Boost Your Savings Allotment
Not to be confused with saving money, budgeting is a practical way to plan out your monthly expenses so you can see exactly where your money goes and how much can go towards savings.
Generally, budgeting requires a breakdown of your monthly expenses against your monthly income. There are two ways that you can plan out how to budget for adding money monthly to your savings.
The first way is to take your monthly income, before you pay bills, and set an amount that you want to add to a savings account. Then, you will deduct your monthly bills after.
The second way to budget is by taking your monthly income and subtracting your monthly bills. Once you do this and you have a remaining amount, you can then decide how much you would like to put away for your savings.
2. Look At Where And How You Are Spending Your Money
The ease of opening a monthly recurring account is tantalizing and troubling because we will often forget that we have done it. Maybe it isn’t recurring accounts that are draining your bank, but it could be those extra coffees to-go or treats while you are out.
The list below details a few things to watch for when you are looking at where your money is being spent.
- Be mindful of takeaway meals and drinks, they add up
- Track all of your online service accounts like Netflix, Spotify, YouTube, etc.
- Set alerts for your bank to send to your mobile device so you can see in real-time when debits come out of your account.
- Save without thinking about it by setting up monthly transfers from your checking to your savings account.
There is no reason to stop spending altogether just to reach your saving goals, but rather be more aware of where and how you are spending your money so you can make adjustments where necessary.
Related Financial Geek Article: 11 Quick Tips For Spending Your Money More Wisely
The Bottom Line
Whether you have already started saving or have hit your savings goal of $30,000, having a plan in place to achieve this goal is the best place to start. Consider what you want the savings for, and how you will make necessary financial adjustments in your life, and start saving.
As the old saying goes, it is better to have and not need than need and not have!
Thanks for reading folks!