Studies into savings behaviour indicate that people who set savings goals save more, and reach their goals faster, than those who don’t. And although we’re tempted to live in the moment and spend freely, making it hard to save, the good news is that this can be easy to overcome with a few prompts or nudges.
So why not set some savings goals for yourself? You could start by thinking about the answers to some of these questions:
Once you've turned your answers into a savings plan, you’ll need to keep focused on it.
Write your goals down |
Place them somewhere visible like the fridge door, record them in a savings app, or make a note in your phone. The idea is to make sure you see them often so you're reminded of them regularly. |
Break big savings goals down |
Break down big savings goals, into a series of smaller targets. Big goals can seem daunting, and when you don’t seem to be getting much closer to them it can be tempting to give up. Breaking them down into smaller goals will make it easier to see the progress you're making and keep you motivated. |
Get friends or family involved |
Share your savings goal with them and ask them to check up on your progress on a regular basis. Better still, make it competitive and encourage them to set their own savings goals. Sharing goals can make you feel more accountable for them, and encourage you to keep going. |
Think about timescales |
It can be helpful to think about your savings goals in terms of short term (like a holiday or a new car), medium term (e.g. a down payment for a house) and long term goals (e.g. pay off your mortgage or save towards a retirement fund). By separating out your goals in this way, you can enjoy the gratification of reaching short term goals, while still having plans in place to reach your longer term goals. |
Write your goals down |
Break big savings goals down |
Break big savings goals down |
---|---|---|
Place them somewhere visible like the fridge door, record them in a savings app, or make a note in your phone. The idea is to make sure you see them often so you're reminded of them regularly. |
Break down big savings goals, into a series of smaller targets. Big goals can seem daunting, and when you don’t seem to be getting much closer to them it can be tempting to give up. Breaking them down into smaller goals will make it easier to see the progress you're making and keep you motivated. |
Break down big savings goals, into a series of smaller targets. Big goals can seem daunting, and when you don’t seem to be getting much closer to them it can be tempting to give up. Breaking them down into smaller goals will make it easier to see the progress you're making and keep you motivated. |
Write your goals down |
Get friends or family involved |
Get friends or family involved |
Place them somewhere visible like the fridge door, record them in a savings app, or make a note in your phone. The idea is to make sure you see them often so you're reminded of them regularly. |
Share your savings goal with them and ask them to check up on your progress on a regular basis. Better still, make it competitive and encourage them to set their own savings goals. Sharing goals can make you feel more accountable for them, and encourage you to keep going. |
Share your savings goal with them and ask them to check up on your progress on a regular basis. Better still, make it competitive and encourage them to set their own savings goals. Sharing goals can make you feel more accountable for them, and encourage you to keep going. |
Write your goals down |
Think about timescales |
Think about timescales |
Place them somewhere visible like the fridge door, record them in a savings app, or make a note in your phone. The idea is to make sure you see them often so you're reminded of them regularly. |
It can be helpful to think about your savings goals in terms of short term (like a holiday or a new car), medium term (e.g. a down payment for a house) and long term goals (e.g. pay off your mortgage or save towards a retirement fund). By separating out your goals in this way, you can enjoy the gratification of reaching short term goals, while still having plans in place to reach your longer term goals. |
It can be helpful to think about your savings goals in terms of short term (like a holiday or a new car), medium term (e.g. a down payment for a house) and long term goals (e.g. pay off your mortgage or save towards a retirement fund). By separating out your goals in this way, you can enjoy the gratification of reaching short term goals, while still having plans in place to reach your longer term goals. |