Advice
Thunder cracks, and lightning streaks across the sky. Deep in your financial laboratory, you’ve been experimenting with bits and pieces of savings strategies, trying to craft the perfect plan. But something’s missing… a spark!
Welcome to the laboratory of Doctor Frankensave, where we’ll stitch together the right financial tools to bring your savings plan to life.
This isn’t just a collection of ill-fitting parts—oh no! We’re using smart goals, an emergency fund, and automated savings to create a powerful financial monster. And don’t worry, this isn’t the kind of monster that runs amok—it’s one that works for you, building wealth and giving you peace of mind.
Ready to get started? Grab your lab coat, because we’re about to shock some life into your financial future.
1. The Brain: Smart Goals
First things first: you need to give your Frankensave Monster a brain, and hopefully not an Abby Normal one. That’s where your smart financial goals come in! Set goals that are Specific, Measurable, Achievable, Relevant, and Time-bound. This will keep your creation from stumbling aimlessly and give it direction.
- Specific: A vague goal like “save more” won’t cut it. Be clear about what you’re saving for—a new car, a vacation, an emergency fund.
- Measurable: Set an amount. Instead of “save for a vacation,” try “save $2,000 for a trip to Hawaii by June.”
- Achievable: Sure, saving for a castle is fun, but make sure it’s within your reach. Don’t stretch yourself too thin, or your monster might collapse before it even gets up!
- Relevant: Align your savings goals with your broader financial life. If you have debt to pay off, prioritize savings that support your financial health.
- Time-bound: Give your goals a deadline. Without a clock ticking down, your monster might wander the countryside indefinitely.
Need help setting goals? Learn more about setting a plan that fit your needs.
2. The Heart: Emergency Fund
Remember how Frankenstein’s monster needed a good jolt to get that heart pumping? Well, when things go wrong your savings might need a lightning bolt to shock things back to normal. And your Frankensave could flatline without an emergency fund.
An emergency fund keeps your financial monster alive and well during unexpected circumstances. Like a defibrillator, it’s ready to jolt your finances back to life if your blindsided by a car repair, medical bill, or job loss.
- Start small: Aim for $500 to $1,000 as a starting point, then gradually work toward 3 to 6 months’ worth of living expenses.
- Keep it liquid: Keep your emergency heart beating with an account you can easily access, like a high-yield savings account.
- Guard it well: Temptations to dip into this fund will arise—especially when you want something shiny and new. But remember: this lightning rod is only for true emergencies!
Not sure where to start? Learn how to build an emergency fund here.
3. The Muscles: Automation
Every monster needs strength, and “muscle memory” is key to keeping your savings on track. Just like muscles move without much thought, automation makes your savings grow stronger with minimum effort.
- Direct deposits: Set up automatic transfers to your savings account every payday. You won’t miss what you never see in your checking account. If you’re using 1st Source Bank’s Online & Mobile Banking, you can schedule automatic transfers easily.
- Money Management: Use 1st Source’s Online Money Management tools to track your spending and savings progress automatically.
Automation builds the muscle that keeps your Frankensave in shape. When the process becomes routine, your savings will grow stronger with every financial flex.
4. The Skeleton: Budgeting Structure
A good monster needs a strong skeleton—just like Frankenstein’s monster, who needed a sturdy frame to withstand an angry mob of villagers. The bolts and bones are carefully assembled to create a strong structure. Your budget works the same way—it’s the framework that holds your savings plan together..
- 50/30/20 Rule: Allocate 50% of your income to needs, 30% to wants, and 20% to savings or debt repayment.
- Track your spending: Use 1st Source’s Online Banking to set up a budgeting plan that tracks your spending categories and helps you stay on course.
- Separate savings: Stay organized by opening a separate savings account for specific goals, like vacations, big purchases, or saving money for the holidays.
Without a proper skeleton, your Frankensave might crumble. Structure your budget well, and you’ll have a financial framework that can stand the test of time.
5. The Eyes: Tracking Progress
At first, Frankenstein’s creature wandered around and didn’t understand what it was dealing with. Then it encountered fire. At first, the flames seemed helpful, providing warmth and light. But as the creature soon discovered, fire can also burn if not handled with care.
Your Frankensave needs to track its progress with the same awareness—if you don’t pay attention, what seems like steady progress could suddenly become a financial misstep. By regularly checking your progress, you’ll keep your Frankensave on the right track and avoid any unexpected burns.
- Set milestones: Celebrate small wins along the way. Whether it’s saving your first $100 or hitting a big goal, recognizing progress will keep you motivated.
- Review monthly: Just like a good scientist logs their experiments, you should check your savings and spending every month. Use 1st Source Bank’s Online Banking to review your account activity and ensure you’re meeting your goals.
With clear vision and a careful approach, you’ll guide your creation toward success—because while fire can be useful, you don’t want your savings to go up in smoke!
6. The Stitching: Persistence
The final step is the stitching—just like how Frankenstein’s monster was carefully sewn together, your financial plan needs careful attention to stay intact. Remember how the doctor painstakingly stitched each part together? Well, without that, the monster wouldn’t have held up. Keep your savings plan well-stitched with regular habits, and you won’t end up with a creature that falls apart at the seams!
- Stick to your budget: Follow the plan and avoid impulse spending. It’s easy to give in to temptation, but remember, a good monster is disciplined.
- Make saving a habit: Save regularly, even if it’s a small amount. The more you stitch this habit into your daily routine, the stronger your monster becomes.
- Revisit your goals: Financial needs change. Adjust your savings goals as needed to keep your Frankensave relevant and intact.
Stitching your monster together requires patience and diligence, but over time, you’ll see your creation come to life.
Conclusion: It’s Alive!
With a flick of the switch, sparks fly and your Frankensave monster roars to life! But unlike the tales of mad scientists losing control of their creations, you hold the key to harnessing the power of your financial future. Each part of your savings monster—goals, emergency fund, automated savings, and a clear budget—has been sewn together to form a strong and resilient financial foundation.
Now, let your Frankensave roam free, growing stronger with every smart decision you make. Remember, a well-built monster is nothing to fear!
Ready to take the next step in your financial journey? For more electrifying insights and tools to keep your financial creature on track, visit 1st Source Bank’s Financial Education Resources.
Your savings journey begins now. Let’s shock some life into your finances!