Living pay cheque to pay cheque is fine while you’re young, free and have a high tolerance for pay-day-is-still-a-week-away induced adrenaline. We’ve all been there, and so we would all know that it just isn’t sustainable in the long run. Having a good amount of savings is your true key to financial freedom and protection in the event of financial emergencies.
Regardless of where you are at in your life, you should be aiming to put aside some of your monthly earnings into your savings accounts (a good rule of thumb is 20%, but whatever is going to get you to your goals works for us!).
While it’s super important to recognize that saving can be a struggle for a lot of people, let’s look at what we can do to grow your savings nest.
Most of us are saving up for something whether it be a new computer, a new car or even a down deposit on a house.
By turning these wishes into goals, we can make it way more likely to achieve them. The best savings goals are highly specific, time-bound, measurable and actionable. Pretty much, they meet that SMART goal framework.
So, with your goal in mind, consider:
There are also plenty of tools out there to keep you on track when it comes to achieving these goals.
One of the easiest ways to hit your savings goals is by consciously adding them into your budget. If you know how much you need to save, it can help you budget your expenses accordingly.
If your goals are big, budgeting can help you reduce your living expenses and make sure you are putting aside the amount you need to save. For more info on budgeting, check out our article all about it.
Many banks allow you to set up different savings accounts to help you understand how close you are to reaching your goals. This is especially helpful when you have multiple different goals on the go as having all of your savings in one account can make it easy to lose track of your progress towards each of them.
It can also allow you to make use of automation so that a pre-set portion of your income is moved directly to savings on pay day.
Other benefits include being able to take advantage of high interest rates and benefiting from new bank account bonuses.
Spreadsheets calendars can be super helpful, especially when you’ve broken your big goal down into multiple little ones. By noting down your goals, the days, you are saving money and the amount you are saving, you can calculate exactly how long it will take to achieve these goals. From there, you can re-adjust your plans to make sure it works for your timeline without having to save more than what is comfortable for you.
It can also be highly motivating to watch your savings grow over time!
Overall, savings goals are the backbone to successfully putting money aside for future you to enjoy! Next time you have a second, try writing down all of your goals and using some of these tools. You might be surprised by how much you can save when you put your mind to it.
Good luck amigos.