Sponsored content from Regions Private Wealth Management
Jan 31, 2017, 4:41pm EST

By making a regular habit of saving and monitoring progress toward your financial goals, you can build stamina to reach the finish line and bask in the glow of a race well-run.

Whether preparing for your first marathon or your fourteenth, you know that you can’t finish the race without preparation and discipline. With 26.2 miles to cover, it’s most certainly not a quick sprint. The same can be said for financial goals.

It doesn’t matter whether you’re establishing relatively short-term goals, such as paying down credit card debt by year-end, or taking a longer view and planning for a first home, child’s college education or retirement, Regions Bank has some healthy financial habits that can move you closer to the finish line.

1. Create a plan

Going from couch potato to long-distance runner won’t happen overnight. Just as you’d need to plan a training regimen and determine milestones before tackling a long race, you’ll need to do some research and planning to figure out how to best reach your financial target.

Maybe your goal is to buy a first home, so start with some research to determine exactly what dollar amount you’ll need and when. Online savings calculators can provide details on how much you need to set aside each month to reach your goal. Once armed with that information, develop a budget around that goal and track your spending to be sure you stay on course.

2. Create a support network

A training partner can offer motivation and support before and during a race, and it’s no different with household budgets. Spouses should work together to keep tabs on their spending and savings, as teamwork can help everyone stay on track and focused on the ultimate goal.

Even kids can play a role, such as by helping to grow a college fund. By setting aside birthday or babysitting money, children can learn about the importance — and the rewards — of sacrifice and hard work.

3. Be flexible and change things up

Training with the same workout every day can not only result in losing interest, but it can make progress stagnate. If a budget is too restrictive and resulting in frustration, then it may be time to take another look. If you’ve focused on belt-tightening, think about how you can bring in additional cash to allow for some breathing room and an occasional treat. Consider working extra shifts, selling unneeded belongings, or renting out a room or parking spot.

Once you’ve made progress, look for other ways to supplement your savings. If you’re maintaining investment portfolios to help reach your goals, periodically rebalance them to make sure they reflect changing risk environments and to free up capital to take advantage of any new opportunities.

4. Adjust for the final stretch

As a big race approaches, it’s important to maintain conditioning while being wary of regimens that could bring on an injury from which you may not have time to recover. Similarly, with savings goals, as the need becomes more immediate, your savings and investment accounts will have less time to recover from a sudden dip in value, whether it’s from a market downturn or an emergency withdrawal.

For instance, when saving for retirement while in your 20s and 30s, higher-risk investments may provide greater growth potential over time. As you near retirement, however, you’ll want to start protecting the growth achieved and consider lower-risk holdings that can help preserve value.

5. Prepare for the unexpected

Life throws us curves, and it’s not unusual for a training program to get off-track for any number of reasons. Our financial goals can also be at risk, such as from unexpected home or auto repairs, a job loss or an injury. To be able to meet these challenges head-on, prepare an emergency fund to cover expenses. Experts at Regions Bank recommend saving enough to cover three to six months of expenses. If you’re not at that level yet, consider adding this purpose to your monthly budget.

By making a regular habit of saving and monitoring progress toward your financial goals, you can build stamina to reach the finish line and bask in the glow of a race well-run.

References:

1. https://www.regions.com/Insights/Wealth?WT.ac=VanityURL_wealthinsights
2. https://www.bizjournals.com/bizwomen/channels/cbiz/2017/01/5-ways-to-win-your-financial-marathon.html?page=all