How a Savings Goal Is Like Running a Race

What huge event is celebrating its 137th anniversary today?

That’s right, it’s the Kentucky Derby! Lots of well-dressed fans will be donning big hats and sipping mint juleps this weekend to celebrate a race that lasts two minutes, but takes hours upon hours of preparation.

I’m no horse jockey, but I’ve spent some time running races of my own. With lots of 5k’s, several half marathons, and two marathons under my belt, I’ve learned a thing or two about preparing and training for races, and the methods I use can be applied to saving money, too.

Here are the steps I take to get ready for a race, and how they can each be applied to your own “financial race.”

1. Choose a race.

When it comes to choosing my next race, I decide what kind of a race to run. Do I want an easy but fun 5k, or a lengthy and hilly marathon? The same goes for your financial life. You’ll have to decide which financial race to run, whether it’s saving for a new laptop or a house. And just like a paid registration fee commits me to one specific race, you should also commit to your financial goals, however lofty they may be.

2. Get the gear.

I run all of my races in one of two pairs of shoes: either my Vibram FiveFingers (yes, they’re funny looking) or my Brooks Adrenalines. I know I can rely on either to take me the distance safely, granted I update with a new pair often enough and pay attention to my form while I’m running in them.

When it comes to your money, you have to find reliable financial resources. If you’re saving for something special, find a trustworthy financial institution to save your money with, one that gives you a return on your investment. For example, right now I’m saving for a digital SLR camera through SmartyPig.

3. Make a plan.

Once I have my goal race and gear, I make my training schedule. I decide which days during the week I’ll be running to train and which ones will be cross-training days. I decide how many miles I need to run each week. I’ve made the same decision with my online savings account for a new camera. I’ve set up automatic transfers of $25 from my bank account to my SmartyPig savings account. Twice a month, $25 goes toward my new camera.

Track your budget and expenses through a website like Mint or Bundle and figure out how much you can contribute to your savings goal. See if you can decrease some unnecessary spending so you can contribute more each month.

4. Train hard.

Once my race training schedule is underway and I’ve begun to feel stronger, it’s easy to slack off and convince myself that I can skip a day or two and take it easy. But if I slack off too much, I won’t be prepared, and I won’t meet my goal of a stronger or faster race. When I’m feeling the strongest is when I have to train the hardest. The same goes for my savings account. As I see my savings increase, I might be tempted to withdraw early to make another purchase, but if I leave it alone, I’ll reach that goal and gain the interest on my account.

5. Accomplish the goal.

If I’ve trained well and remained healthy, reaching my goal is easy. It takes a little at a time. I can’t go from walking a few blocks to running 26.2 miles. It’s the same with savings goals. You can’t expect to reach your goals overnight or without effort. I know that if I’m diligent about saving, and perhaps add a little extra when I can, I’ll reach my goal triumphantly.

6. Celebrate.

This is the easy part. Getting to the goal is hard, but celebrating after comes naturally. With every finish line I cross at a race, I feel elated, proud, and accomplished. And once I’ve saved for my new camera, I know I’ll celebrate and pat myself on the back for saving and being patient. The same goes for you. Celebrate the financial goals you’ve accomplished!

Whether you’re running a savings race to get a new camera or a new house, train hard, just like the Kentucky Derby horses, and you’ll come out on top in your finances.

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May 5, 2011 • Posted in: Credit Cards News

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