If you’re looking forward towards something specific, such as having enough money to pay for a wedding or a dream vacation, then one of the best things you can do for yourself is set an achievable savings goal. As with most things in life, it’s often found that setting a goal for savings can make it easier to achieve your ambitions and bring your dreams to life.
People who set a money savings goal are typically more likely to reach their end ambitions faster than people who don’t. If you really want to get that deposit for your new home, or you want to make sure that you can afford the honeymoon of a lifetime, here are some tips that could help get you started.
Choose a Name for your Goal
It might sound silly, but giving your goal a clear name can be an important step towards success. Think about what exactly you want to save for. If you take the time to name your goal, you should end up reaching it a lot faster. If you’re new to budgeting and saving, try starting off with a small goal, as this will be much easier to achieve.
If you can, write down your goal, and keep it in your sight as often as you can. This will help you to visualize the way that you can spend your money in the future if you avoid spending it on frivolous objects now.
Work Out How Much you Can Save Each Month
Although you might want to save a very specific amount towards your goal each month, the amount that you can realistically hold back is going to be specific according to your circumstances. For instance, you’ll need to take the time to look at how much you spend in depth each month, and how much you can realistically afford to cut back on. You’re still going to need to pay for your mortgage, your food, and other crucial expenses, so don’t go over the top when budgeting your savings needs.
Look at all the money that’s left over when you’ve finished buying essential things, then realistically come to a decision on how much of that you can avoid using each month. This will help you to determine what’s best for you in terms of a plan.
Create a Standing Order
While you’re motivated and ready to get saving, it’s a good idea to set up a standing order in your bank account. Open a straightforward instant-access savings account, and set up a regular direct debit payment that will transfer the amount you want to save each month into your savings account. This can help to make sure that you always save back something every month, and you’re not tempted to simply spend your money elsewhere.
Make sure that you take the time to look for the best place for your savings. If you’ve got a short-term savings goal, like something that could take about five years, you’re going to need something that you can access almost instantly. Make sure that you don’t simply put your savings into an ISA account or a locked account that you can’t use because you’re sure it will give you a better rate of interest back on your money.
What if I can’t Save?
Everyone can save for things that they don’t need immediately, but there’s always a chance that an emergency could happen in your life that means that you need money instantly. If that’s the case, then you won’t be able to afford to sit and wait for your money to accumulate in a savings account. Instead, you’re going to need to look for an alternative option. Some people turn to credit cards here, which can be a good option if you’re only making a small purchase, but if your needs are bigger, then you’re going to need to think about taking out a personal loan.
A personal loan is a form of unsecured loan that you can use to get access to the money that you need quickly and effectively for a range of different reasons. These loans can offer you a few thousand pounds, or a lot more depending on what you need, and you can arrange your repayment schedule to suit your requirements exactly.
Although a personal loan won’t be the right option for everyone, it’s often the best solution for people who don’t want to max out their credit card, or can only get access to credit cards with very high interest rates. A personal loan is also unsecured, which means that if anything goes wrong, you don’t risk losing your home or another aspect of your property to the loan company. Just make sure you can afford to make the repayments before you sign up for any kind of loan.