Saving is the best way to safeguard your financial future. But sometimes it can be challenging to stay motivated and disciplined. Your saving efforts will be much more effective if you have a clear goal in mind and an idea of how to go about it.
Asking yourself the following questions will help with setting savings goals:
What am I saving for?
Knowing what you are saving for will help you determine exactly how much you need to save and in what time frame. Have a financial goal in mind. Maybe you would like to raise the deposit for your first home or the home you’d like to retire in. Perhaps you want to put aside some funds for your children’s education.
Whatever your purpose, making it more realistic will keep you motivated as you may need to make little compromises along the way.
How long will it take me?
Once you know what you are working towards, you will be able to roughly calculate how long it will take you. Sometimes you will be saving with more urgency, trying to raise a larger amount over a smaller period. At other times, you might want to just develop consistent habits that will help you gradually grow your savings. We offer different savings accounts and investment opportunities to suit your timeline.
Set yourself a deadline and figure out how much you will need to put aside each week or month to meet it. Even if you are saving without a specific target, this is a great motivational technique to convince you to stick to your savings goals.
How do I go about it?
Now you should have an understanding of how much you need to raise, by when. All that remains is knowing where the funds will come from. If you have already set a budget, you probably have identified potential savings and can start moving them over to a high interest savings account.
If not, consider making a couple of small personal sacrifices in your everyday spending and redirect the money saved into a savings account. Or you could credit part of your salary each month into savings. If you have a bulk amount set aside you could invest in a term deposit with fixed interest rates to see it grow steadily.
We have the services and support to help you set and stick to your savings goals. To explore setting savings goals, talk to one of our consultants on 1300 654 822.