Two weeks of 2015 have swiftly flown by and some people may have already settled back into practising unsupportive financial habits, despite their fervent declarations to do better this year. In fact, there may be few differences between the New Year and all the past years for many persons.

Even if you realise that your resolutions usually fizzle out like wet firecrackers, don’t give up on trying to create a better life. The key to being successful with your goals is to break them down into bite-sized objectives that you honestly believe you can realistically attain over the year.

Last week we discussed a fundamental money goal to accomplish this year — preparing a budget. This will give you a solid base upon which to build your financial future. If you are not currently saving consistently, I encourage you to make it the second objective on your bucket list for 2015.

Saving still makes sense

Some might argue that saving is almost impossible when prices are constantly rising, as every dollar earned has to be ploughed back into paying bills. Others may complain that saving is counter-productive, since savings interest rates are currently lower than the rate of inflation.

Despite these realities, the process of saving is critical for financial success for several reasons. First, putting aside money instead of spending it requires sacrifice and discipline, which are two prerequisites for achievement in any field. You have to give up something to get what you want in life.

Saving also helps you to create a source of cash that can be utilised for emergencies or to take advantage of business or investing opportunities when they arise. In addition, saving helps you to focus on money accumulation instead of scarcity, and will positively change your financial results.

Make saving a habit

Therefore, your mission for this year is to make saving a routine part of your life, so that it becomes as habitual as brushing your teeth each morning. You want to get so accustomed to saving that you will feel out-of-sorts if you miss a weekly or monthly contribution to your savings accounts.

Part two of your mission is to set a practical savings target that you want to attain by December 31. Whether this amount is J$1,000, J$10,000 or J$100,000, you need to arrive at a figure that is realistic in view of given your current financial position and the other obligations you need to meet each month.

To develop this habit and realise your money target, you will need to put saving on the front burner, instead of relegating it to something you might do if you have any funds left over at the end of the month. Let’s look at some simple steps that will help you to accomplish this important money objective.

Decide on a savings goal

It’s easier to remain motivated to save when you have something specific that you want to achieve with your money. For example, you may want to save towards your university tuition for next year September, or to put aside funds to treat your family to an all-inclusive holiday in December.

Once you have determined your target, break down that figure into the monthly, weekly or daily sum that you would need to save in order to reach your goal. So, if you want to amass J$60,000 by year end, you would have to put aside about J$5,000 per month, J$1,153 per week or J$165 per day.

It’s essential for you to commit to contributing the required amount for the period that works best for you. Don’t promise yourself that you will make up a missed day’s or week’s payment at another time; you will be more likely to give up the process if you divert from your savings routine.

Establish a savings vessel

You also need to choose the right depository to hold your money. The account that is appropriate for your needs will depend on your overall objective for your savings and the amount that you can put aside regularly. Ensure that you avoid using accounts that charge you for making a deposit.

So, if you are saving for a down payment on a home, a financial institution that can help you with a mortgage, such as a building society, may be your best option. If you are saving small amounts each day or week, then keep the funds in a locked cash pan or a safe area until it reaches your account.

Even if you are in debt or you don’t earn enough income, building a saving habit is still possible. Keep the small change from grocery shopping or collect discarded coins wherever you find them, and put the money in a clear container each day so that you can observe your pile getting bigger.

Although these small sums may seem insignificant, focusing your attention on money growing in your life, instead of dwelling on your money problems, can make a big difference. If you become consumed with your saving activities, I guarantee that 2015 will be much more prosperous for you!

Copyright © 2015 Cherryl Hanson Simpson. No reproduction without written consent.

Originally published in The Daily Observer, January 15, 2015

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Cherryl is a money coach and business mentor, and founder of Financially S.M.A.R.T. Services. See more of her work at www.entrepreneursinjamaica.com and www.financiallysmart.org. Contact Cherryl