How to save for Your Goals

The good life doesn't just happen, there are certain steps that you need to take to make it happen. And since we know that we are probably NEVER going to win the lotto, we just need to get working to create our dream lives. Stop wishing and start doing. 

So, whatever your savings goals are this year, it’s important to understand what you're spending on now so you can figure out how to save for your new goals. 

If you really want to achieve your goals and value a more balanced approach to reaching them, then consider the following tips. - 

Look At Your Finances

First, take a look at your finances in detail and see where you money is going.  Include rent, car insurance, groceries, and even small purchases such as coffee or snacks. Once you've identified your spending habits, you can now start planning for your next goals.  

Name Your Goal 

Grab a pen and write down your goal down. If you don't have a goal there is a chance that you will squander your finances. Goals give us direction and they help us to focus. When you are just putting money into the bank on a regular basis, it can be easier to withdraw it for various reasons or overspending, and using some of your money earmarked for savings is easier to justify. 

Look At Your Motives

Figure out what is are your motives for wanting that goal.  If you are running after the pseudo life of Instagram then you are going to fail. That life is not real. But you can create a satisfying, real life for yourself.  This is your life. Value and honour yourself. 

How Much Can You Save

Once you have your goal figured out, look at your finances then determine how much you need in order to reach each goal. Your money dictates the goal. If you can save for the goal then go ahead but if not then change the goal to suit your finances. The aim here is to save for a goal not get in debt for a goal.  Use the savings calculator to see how long it’ll take you to reach your goal.

Timeline For Your Goal

Be realistic and specific. This will give you additional motivation to meet your savings goals. The bigger the goal, the more difficult it will seem to achieve. Break it down into monthly or weekly amounts that are easy to picture.  Make sure that you involve your family in the discussions about how you can achieve this goal. By involving your family in a meaningful way you are lightening your burden. Research shows you’re less likely to give up on a goal when you can see the finish line. 

Where To Put The Money

You can choose between investing the money or saving the money, it all depends on your goal. Remember, when you save you are putting your money aside bit by bit, to make a lump sum. And when you invest you take money buy shares and stocks with the aim of making it grow. Whatever your decision is, make sure that you thoroughly do your research to find the best option. 

So Here Are Your Options: 

  • For a short-term goal (up to 5 years) you want a saving product like a savings account or term deposit.
  • For a medium term goal (5-10 years) use a savings product, or consider investments depending on your goals and risk appetite.
  • For a longer-term goal you should consider investments like shares, bonds or funds that tend to provide protection from inflation over the long term.
Remember your goal must fit your budget and timeline. Just take the total amount you need to save and divide it by the number of months (or weeks, or years—however often you plan to contribute money) between now and your deadline.

If, after a few weeks, you realize your goal is unrealistic, it’s O.K. to re-evaluate your timeline and numbers. If you don't give up you'll find that you were overly optimistic. So, keep calm, revise downward and carry on.