Setting Goals for Savings
Subscribe To Our Feed
With the economy facing big problems here and around the world this year now is the time to shed debts and start some savings goals to buy major items debt free using high interest savings accounts. Wanting to save money is a good start but it will take more than that. That won’t quite cut it. Saving money requires a disciplined, well-organised approach.
Below are a few savings tips:
Establish specific goals for saving money
Clear savings goals keep you focused on your savings program. The motivation is higher than if you had no goals as your saving towards something you really want. The value of the goal also guides you on the amount that should be set aside each month. The goals could be:
• Saving up for an emergency cash reserve equivalent to 3–6 months’ living expenses
* Saving for the deposit for your next home
* Boosting your pension funds
• Saving enough for a holiday in a particular destination
Set a specific time frame for achieving each goal. Once you have the goals and the time frames, divide the dollar values by the number of pay periods between the present and the target date. The result is the amount you need to save from each pay cheque.
Make saving money pay
The serious saver takes the effort to look for a savings account that pays them more interest for saving money. The interest rates offered by standard transaction accounts won’t help you reach your savings goals. One tof the easiest ways to find the best interest rates is to use a finance comparison website.
If you had $5,000 sitting in your everyday bank account for a year and didn’t touch it then at the end of the 12 months you’d still have around $5,000. If you had the same $5,000 sitting in a high interest savings account for a year, you’d likely have more than $5,400 at the end of 12 months. High interest savings accounts attract around 7–8 per cent, which means you get paid for saving money.
Make saving money automatic
Very often, one’s idea of saving money is to save the amount left over each month after paying all outgoings. While it’s good to learn some self control when it comes to spending money it is easier to act as if the money never existed. To increase your chances for success in achieving your target, remove self-discipline from the picture and make saving automatic.
One effective way of doing this is to request your employer to deposit a specified amount from your pay directly and automatically into your new high interest savings account. Once you have set this up then it will take place automatically and you don’t need to remember. However, you may have to provide information about your high interest savings account. If you don’t want to do that, you can link the high interest savings account to your normal bank account.
Find income boosting solutions
Increasing monthly income is a great way to help achieve big goals, but it is often neglected. By boosting income, you can save larger sums more quickly. There are ways to reach your goals faster such as working multiple jobs, putting your handup for overtime or doing odd jobs for neighbours. Sell some stuff you don’t need, or find ways to generate income from your hobbies.
Summing up, learn to be patient through all these. Progress may be excruciatingly slow at the start, but things will accelerate. You will be able to find different ways to save money and cut your budget or to bring in extra income. You may even get unexpected support or extra bonuses. Stay focused on your big goals and you’re likely to succeed.
Article by R Greenwood of Compare Your Bank which allows consumers to compare banks online.
Technorati Tags: No Tags
Related Tags: No Tags
Possible Related Posts
Leave a Reply
You must be logged in to post a comment.
