Saving money is a simple concept, but it can certainly be challenging. Whether you struggle with managing your budget, or your financial situation just doesn’t allow you to save, there are obstacles that can deter anyone from a solid savings plan. One thing that can truly help guide you is to create a savings goal. If you are saving for a specific purpose, then you can put together a strategy to achieve that goal. The generic idea of saving money doesn’t come with a final goal or any measurable achievements. So, you have to create them to make your plan work.
Steps to Create a Savings Goal
Pretty much everyone wants to be able to put more money into their savings account, but not everyone has a goal that they are working towards. Some people may be saving up for a car down payment, a vacation, a college fund, a home, or retirement. When you don’t have a goal, you don’t have a number. Without any guidance or metrics, you don’t have a specific amount that you are trying to save. Goals need to be measurable.
Savings Goal Calculator
A great tool to help you make your savings goal plan is ACCC’s Saving for a Goal Calculator. Using this tool, you can plug in some actual numbers (like the cost of your goal, your amount saved, and how much you save each month/week). The calculator will tell you how long until you will reach your goal. You can alter your calculations (by saving more each month/week) to speed up the time to reach your goal.
Combine this with ACCC’s Household Budgeting Worksheet and you should be able to find areas of your budget where you can save money, then start working towards your goal!
With these tools in hand, you have a very strong chance of reaching your savings goal.