Tracking and celebrating our Saveversaries has helped us stay motivated on our path to financial freedom. And it’s super fun! So I’d love to let you in on how it works.
What on earth is a Saveversary?
Simply put, a saveversary is a celebration of hitting a savings milestone, defined in terms of the # of months or years of expenses you’ve saved!
Still unclear? Well it’s example time!
Here’s the issue. It will take Janine quite a while to meet her goal. 18.6 months to be precise.
That’s a long time to stay dedicated to a goal, even one as important as building an emergency fund. After all, spending instead of saving often seems so alluring, so shiny! Especially when most of us don’t go a day without seeing ads encouraging us to spend, spend, spend!
Why does hitting a Saveversary matter?
Hitting your Saveversary can help you feel proud that you’re building towards the future and recognizes your efforts in doing so!
And you can make it a social occasion. Tell some close friends about your Saveversary goal and let them know when you hit it! They’ll be proud of you and you’ll get all the nice feels that come with sharing accomplishments!
You can also double down by giving yourself a Saveversary present. Ideally, it’s something you’re super excited about, but that’s also relatively inexpensive and within your budget. After all, you don’t want to blow through your savings by celebrating your savings!
As a rule of thumb, make sure you’re spending less than 1% of your Saveversary goal on your present. So Janine should aim to spend less than $35 each time she hits a new $3,500 Saveversary. For bonus points, try to think of an exciting Saveversary gift or experience that’s free!
Having a Saveversary present or activity planned can make build up savings even more exciting!
What if I have no idea how much I spend?
Then you’re not alone. Many smart folks have no idea how much they’re spending. But like driving without a speedometer, it’s also a recipe for trouble.
You’ll want to start tracking your expenses so you have an idea of how much is going in and coming out. You can learn more about how to set up spending tracking in our Path to Financial Freedom guide.
What if I’m paying off debt or investing?
You can still celebrate Saveversaries if paying off debt or investing is your #1 goal.
For investing, I recommend a slight tweak as well. Instead of celebrating a Saveversary when you hit a certain balance, do so when you’ve contributed one month of expenses to your investment account. Why? Because you can’t control the market’s day-to-day ups and downs, but you can control how much you put in.
For investing, you’ll need to track how much you’ve contributing to your investments each month. We do so in a handy Google Sheet, and even made a “Saveversary tracker” so we know how close we are to our next milestone!
Bonus Tip for Savings Ninjas
If you’re saving less than 20% of your salary, celebrating a Saveversary for each month of expenses you build up makes sense. For example, someone saving 18% of take-home pay would take about 6 months to hit their Saveversary.
But if your savings game is on fire, you may want to up the ante. Consider celebrating every time you save three months, six months, or even one year worth of expenses. For example, if you’re saving 60% of your take home pay, you’ll build up a month of expenses every month. So I’d recommend celebrating each time you hit one year of expenses saved, so it’s more special and something to work towards.
Will Saveversaries Work For You?
Celebrating Saveversaries has been fun and motivating for me and Stephanie as we’ve built up our savings. And I think it could work for you as well!
Do you want to start tracking Saveversaries? Do you have another motivating tip for saving? If so, let us know in the comments!