How to Set a Savings Goal

Will 2023 be the year of savings for you? Well, there’s ample opportunity seeing as though there are still over 300 days left of it! The habit of saving money regularly is just like any other habit. To do it well, one needs to be consistent with it. 

Saving is a hot topic for us (and a lot of others!) because we believe it’s vital for anybody looking to live in financial freedom. We often use the phrase “just start” when talking about saving money, and one of the best ways to do that is by setting an actual goal for yourself. 

Yes, a savings goal.

If you’re serious about wanting to save more this year, setting up a savings goal is a good sign of intention! Let’s take a look at how to set one of these goals. 

Decide What You’re Saving For

One way to encourage starting something is to know the desired end, or in other words, the goal. If saving money is your goal, that’s fine, and we’re proud of you! There is, however, a point to be made for knowing what you’re saving your money for. 

It can become a whole lot easier to put some money away consistently when you know what you’re putting it away for. It can also be encouraging when it becomes harder to continue saving. If the end goal is something of great value to you, that thing could be the extra nudge you might need to carry on, even when things get a little tough. 

Create a Timeline & Stick to It

Now that you’ve started intentionally setting a savings goal for yourself, the next step is to put a timeline on the savings. This adds a layer of necessary motivation for you to keep at it and continue saving until you’ve reached the goal. If you’d like to save a certain amount of money for a new cell phone, set a realistic date that you’d want to have achieved this by and stick to it. 

Set Up a Debit Order

Once you’ve decided what you’re saving for and set a realistic timeline to get there, the next step is to hand over a little control by setting up a monthly debit order off your account to your savings. 

It’s preferable to set this up so that you have no say whether or not the money comes off on certain months. It just does. This is helpful when doubts or temptations to use our money on frivolous things arise. 

Choose Where You Save Your Money

Whether it’s an investment account, a general savings account, or an app like Stash, be sure to pick a wise place to save your money. Do some looking around to find the best interest rates, especially if you’re saving for a longer term.

Track Your Progress

Once you’ve chosen the tool that you’re going to use to save your money, your savings goal is officially set! 

The final step from here is to keep checking in on your progress and track your savings as you go along. If you need to make tweaks or changes, do that. Don’t be afraid to enlist a friend or family member to help you do this. Many money management apps are also available to help you should you need it!

Good Luck & Best Wishes

If you’re committing to saving more money this year, we commend you! We also encourage you to continue seeking knowledge and advice from those around you, as well as a professional, should you need one. 

We hope to see you thriving financially when the end of 2023 arrives. Good luck!