Being an adult comes with so many responsibilities, especially when it comes to finances. In between balancing life and work, some days you just want to let loose and have a fun night out. Or you may love eating out with your friends to take off some stress from that nine to five. But, if you really want to start saving so you can be ready for emergencies or splurge on that trip to Europe, you have to get your priorities in check!

How do you create workable financial goals? Here are 5 tips that will help.

1) Have a Savings Account or Multiple Savings Accounts

According to a survey, carried out by Bankrate, 69% of adults in America don’t have up to a thousand dollars in their savings account. Another 34% don’t have any savings at all.

If this is the case, it means that a lot of people don’t have enough money to take care of a financial emergency or meet a financial goal. In order to continue to survive, they’ll have no option but to resort to debt from loans and payment plans.

So, the first step of creating a financial goal is to have a savings account and if you already have one, maybe have two to really limit yourself. Just make sure to be consistent in saving and set limits on which account is meant for what type of spending.

2) Create a Budget After Savings

Many will create a budget first, and then save what’s remaining. But what if there’s nothing left after creating your budget? That means you’ll have nothing to save for the month until the next paycheck arrives.

If you follow the same process for the next paycheck, you may be left with nothing again, and the cycle continues, you have to break that habit. A more effective option would be to set money aside for savings, and then create a budget on whatever is remaining.

Don’t get it twisted, budgeting and savings are equally important in every financial goal. So don’t skip one at the expense of the other!

3) Skip the Luxuries and Make Sacrifices

Let’s say your goal is to save a thousand dollars within a specific time frame, you may have to skip some luxuries you’re used to. That’s a fair sacrifice, right?

Here are some things you could sacrifice to save some money.

  • Cook your food yourself and take it to work (healthy alternative)
  • Turn down your thermostat by 3 degrees (easier to sleep when it’s a bit chillier)
  • Drink water instead of juice, soda, and even coffee (healthier for you, anyways!)
  • Leave your car at home and take the bus (meet someone new)

In addition to these mini sacrifices, you can save money on these daily expenses to put towards your financial goal – a new pair of shoes, a new phone or TV, or a well-deserved vacation!

4) Have Multiple Sources of Income

The term “side hustle” has become so popular among internet users. Do you know why? It’s because many people, especially millennials are picking up side hustles as a means of an extra source of income.

The good news is, you don’t have to spend much to earn an extra income through a side hustle seeing as the internet has simplified a lot of things. You can earn extra income if you can do any of the following:

  • Teaching
  • Writing
  • Affiliate marketing
  • Driving for Lyft
  • Delivery services
  • Perform market surveys
  • Screen and recruit suitable candidates for a job opportunity
  • Blogging
  • Childcare
  • Coordinate social media accounts
  • Voice-overs
  • E-commerce
  • Translations

These are some of the skills that can fetch you an extra source of income if you put them to use. You can also learn these skills online for free or for just a token.

5) Pocket the Extras

If you come across any extra cash while you’re still working on your financial goal, your best bet will be to put it away in your savings account for good. You may come across some spare change in the form of a bonus, a raise at work, or any other means.

Talking about a raise at work, you can actually talk to your boss about a raise. Especially if you feel you’re long overdue for it. You can also go as far as sharing your personal financial goal with your boss. He or she may see reasons to give you a raise as a result.

Stick around during the month of October for more money savings hacks and tips!