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Setting Savings Goals

Whether it’s for something big, like a down payment on a house, paying off your debts, an event, or simply for your peace of mind, having a specific goal to save towards can help you stay focused. By setting savings goals, you’ll have a clear sense of purpose.

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:

  • What do you want or need to buy in the next 12 months?

  • What breaks or holidays do you plan to take?

  • What high interest debts would you like to pay off?

  • What are your medium term plans (e.g. saving for a down payment on a home)?

  • What savings might you need for your long term future (e.g. your retirement)?

  • What help would you like to be able to provide for your loved ones?

Once you've turned your answers into a savings plan, you’ll need to keep focused on it. 

Here are some ways to do that:

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.

Here are some ways to do that:

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.

Savings Strategies

Discover the different types of savings accounts available and learn more about how they can help you achieve your savings goal.

Learn about the different types of interest and how it can help increase your savings over time.

Learn how the right approach to managing your savings can work with your lifestyle and needs.