I opened a high-yield savings account for each of my 2020 New Year's resolutions and I'm on track to achieve all of them

• I set several goals for myself this year, including traveling to Machu Picchu and writing a book. All of my goals either cost money (such as traveling) or are easier to obtain when money is available (such as writing a book).
• I decided to set savings goals for each of my resolutions to make sure I achieve them.
• In order to stay motivated and track my progress, I set up free online savings accounts for each one of my New Year's resolutions.
• I use Ally because its high-yield savings accounts are free, and it allows me to open as many free savings accounts as I want, nicknaming each one according to my goal. I also earn hundreds of dollars in interest each year with those accounts.
• Find out which high-yield savings account has the best interest rate right now »

If you take a look at your goals list, it's probably pretty varied. However, from hitting the gym more to crossing another country off your bucket list, it's likely that most of your goals have one thing in common: they all cost money.

I want to do a lot of things in 2020. I want to travel to Peru and visit Machu Picchu, I want to write a book, I want to do something special for my parents, and I want to do a long-distance walk that crosses the entire country of Costa Rica, from the Pacific to the Caribbean.

One way or another, all of those goals will cost me money. Having that money saved up and on hand will ensure that finances don't get in the way of me achieving my resolutions.

Money can make your goal easier to obtain, even if your goal is "free"

With goals like travel or gifting, the cost is obvious. I can estimate the cost of my trip to Machu Picchu by adding up flights, hotels, food, tours, and other common travel costs, and then I have a clear goal for how much money to save.

Goals that appear to be free or low-cost are a little trickier. They often have lots of hidden costs we aren't aware of, but these costs can get in the way of our achieving them.

For example, you might think goals like writing a book or completing a challenging hike are free.

However, to write a book, I'll have to cut down on my working hours so I can dedicate more spare time to writing.

I may also want to take some writing classes, hire a writing coach if I hit a mental block, or go on a research trip. Sure, I could write a book without these things, but having access to them will make it much easier for me to reach my goal.

Consider a fitness goal like completing a challenging hike or a long-distance walk. There might be gear involved, but that's not the only cost. You'll want to train for a while to work up to your goal, and while you can train for free in the great outdoors, having access to a gym or a personal trainer can improve your abilities and increase your motivation.

In other words, having more money to spend on your goals can help you stick with them and make it to the finish line.

That's why I like to dedicate a portion of my funds specifically to each goal, even if I don't yet know exactly what I'll spend that money on. I know that when I hit an obstacle, I have disposable income that can be spent on the tools, training, and self-care needed to help me overcome it.

How I save for each goal using high-yield savings accounts

First, I come up with an estimate of how much money I want to dedicate to each goal. Second, I set a deadline. For example, if I want to book my trip to Peru by May and travel there in September, I know that I have until May to save up for prepaid costs like hotels and tours and September for other costs, like food and hotels that aren't prepaid.

Then, I simply divide the goal amount by the number of months I have to reach it, and that's how much I have to save each month.

I've opened a high-yield savings account for every single goal so I can clearly track my progress. This is easy because online banks offering high-yield savings accounts often let you open as many accounts as you want for free, and the process of opening an account takes minutes.

On top of that, you get a better interest rate than you would at a regular bank. I earn hundreds of dollars in interest each year on the money in my high-yield savings accounts, which acts as padding if I go a little over budget.

I use Ally for my high-yield savings accounts because it lets you open multiple free accounts all under the same login and nickname each one.

So, I have an account nicknamed "Machu Picchu" and know that I have to have $500 in that account by May and $3,000 more by September. I have another account nicknamed "My Book," and I simply contribute $100 to that account every month via automatic transfers set up with my bank account. I recently used a portion of those funds to sign up for an online writing class.

Most goals cost money, and those that don't can often be achieved more easily when money is involved. That's why it's smart to put your money where your mouth is when it comes to setting resolutions and set up a savings account for each one.

When they're free, easy to set up, and offer high interest rates, there's no reason not to.

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