When it comes to managing your finances it’s important to have goals. You may be planning to save for something long-term like early retirement or your dream home. Maybe you are saving for something smaller like a new coat or a handbag. Regardless of how far ahead you are planning, savings for a goal can give you better financial perspective and direction.
Saving for a Goal – Tips & Tricks
Saving for a goal is a good method to avoid too much consumer debt and other financial difficulties. However, you must ensure that your financial goals are SMART – specific, measurable, achievable, realistic, and timely. Your goals can be categorized by short, mid, and long-term goals. It’s important to realize that saving a million dollars sounds great, but it’s not a feasible short or mid-term goal. Knowing the right steps to take and where you’re headed is equally important.
Download ACCC’s free personal financial workbook for a full financial goals worksheet. You can also find worksheets on everything from daily expense tracking, bill paying, household inventories, bank account comparisons, and credit card debt to income ratios.
So the next time you walk past a storefront and see that perfect pair of shoes or that cool new smartphone, think about one of your goals. Think to yourself, “Do I want to delay my goal for this purchase?” The answer may very well be yes. But more often than not, it will probably be no. You’ll find yourself making more frugal decisions that will pay off down the line the more you focus on your goals. Get ahead of your savings with the help of ACCC’s saving for a goal calculator.
Saving for a goal is a great method to change your spending behavior and start establishing your future finances. If you don’t already have your financial goals set and savings plans in place, now is the time to start. With the holiday season and a new year just around the corner, you will see a clear difference in the way in which you manage your finances.