Smart Ways To Save For Big Events

There are a handful of really big events in a person’s life. Marriage, children, college, retirement, vacations — these are all typical expenses that require planning and savings to accomplish. Don’t let a fear of savings scare you off from these big events, as there are lots of ways you can easily start to save for the important moments in your life. Here are a few ideas to get you started as you plan for the future.

Make A Separate Fund

Make your wedding fund (or your vacation fund or college fund) separate from everything else — that way you aren’t tempted to spend that money. Have your bank help you open a separate account that isn’t connected to your checking or savings accounts. Then, you won’t be tempted to dip into that money, and it’s still easy to deposit funds into the account since it’s still at your home bank.

Automate Deposits

Many banks offer automatic deposit options. Check with yours to see if you can have a small amount automatically deposited into your new, separate account every time you get paid. Even if you’re just depositing a few dollars at a time, that ads up very quickly, and you’ll have a few hundred dollars before you know it. Plus, having an automatic deposit means you won’t even need to think about it and you won’t be tempted to skip a month, since it’s all getting done automatically for you.

Go On A Financial Diet

Try going on a financial diet for a few months to see where you can realistically save money. Small steps like bringing your lunch to work every day or using web streaming online instead of cable TV can really add up to a lot of money saved. Then, once you get used to not spending that money on a daily basis, you can deposit your savings in your extra fund for that big event you’re saving up for. If you are saving for that dream wedding, bringing a bagged lunch every day won’t seem so bad.

Saving Versus Investing

You’ll want to understand the difference between saving and investing, and which is best for different spending goals. Savings plans are best for your shorter term goals, like wedding planning or vacation planning. Investing is more long-term, and is a great way to raise funds through stocks, bonds and mutual funds, though they have a much higher risk than a traditional savings account. As you are planning for a big event, talk to your banker to help decide which is the best plan for you.

Deborah Flomberg is a theater professional, freelance writer and Denver native. Her work can be found at Examiner.com.