# How to prioritize your savings in 2019

Prioritizing your emergency funds in 2019 can be simple. Learn useful saving money tips here.

Your 2019 resolution: To seriously pad your emergency savings. Also, your 401(k). And 529. (Your four-year-old will be college bound in T minus 14 years, after all.) But all this begs the question: With so much to save for at once, how the heck do you prioritize?

## First things first: Make a list of *what* you want to save for

Before you can start figuring out which order to save in, you need to start thinking about what you’re saving for. Make a list that includes it all—emergency fund, college tuition, an African safari in 2020. Then, next to each item on the list, assign a timeline or deadline. The goal of this exercise? To know what you’re saving for but also exactly when you need the money by.

## Next, rate each savings goal as a need, want, or wish

If saving for your kid's college is a need, but going on an African safari is a want or even a wish, you'll want to make sure you're on track to satisfy your college savings requirement first. In other words, ask yourself: Is this savings goal critical (i.e., under no circumstance do you want your kid to take out student loans) or is it a "nice to have" (i.e., you'd like to be able to contribute to school, but if they have to take out loans, you're OK with that)? This way of thinking can help you prioritize, so you know you're allotting cash to satisfy all of your goals.

## Now, the tricky part: Calculate how much to set aside

To do this, you'll need to look at your list of savings goals and then back into how much you need to be setting aside for each one, based on your timeline. Some examples: Say you want \$1,500 by August 2019 for an end-of-summer getaway to Cabo and it's January. You'll need to start saving \$215 a month. Or let's say you want to pay for four years of college at a private institution for your newborn, you'll need to start saving \$1,400 a month, which will add up to \$300,000 by the time they turn 18. Of course, these are estimated numbers, but you can use an online calculator to figure out exactly how much you need to be saving today to hit all your down-the-road targets.

This should actually be priority number one, because you need a financial cushion for life's inevitable curveballs. Without it, you'll end up making a poor financial choice like using a credit card or tapping other savings (your 401(k) or your 529), which throws off your entire plan for your other savings goals.

Topics:
The statements and opinions expressed in this article are those of the author. Fidelity Investments cannot guarantee the accuracy or completeness of any statements or data.
This reprint is supplied by Fidelity Brokerage Services LLC, Member NYSE, SIPC.
The third-party provider of the reprint permission and Fidelity Investments are independent entities and are not legally affiliated.

Votes are submitted voluntarily by individuals and reflect their own opinion of the article's helpfulness. A percentage value for helpfulness will display once a sufficient number of votes have been submitted.

Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917

875310.1.0
Important legal information about the e-mail you will be sending. By using this service, you agree to input your real e-mail address and only send it to people you know. It is a violation of law in some jurisdictions to falsely identify yourself in an e-mail. All information you provide will be used by Fidelity solely for the purpose of sending the e-mail on your behalf.The subject line of the e-mail you send will be "Fidelity.com: "

# Get more insights from MyMoney

Just sign up and we'll email our latest thinking every 2 weeks.
We understand that privacy and security are important to you and will only subscribe you to the MyMoney newsletter. See our Privacy Policy.

### How to pay off debt—and save too

Here's a guide to help you pay off debt while saving for emergencies and long-term goals like retirement.

### 5 hacks to prevent falling into credit card debt

With some helpful hacks, you can avoid spending too much and prevent credit card debt. Learn more here.

### Pay off student loans faster in 2019

Pay off your student loans faster with these strategies to lower debt and live a better life financially. Here are 7 ways to pay off your student loans faster in 2019.