How To Set A Savings Goal And Stick To It

As finances tighten and costs rise, many are looking to save money wherever they can. This is great, but not setting a proper goal can hold you back from unlocking your full saving potential. We’ve put together a step-by-step guide to building a goal and sticking to it.

How To Build A Savings Goal

The first step is naming and visualising your goal. This part is key and can be anything as simple as ‘I want £500 saved by the end of the year.’ There is no limit or minimum amount to set; everyone is different. If you are just starting, setting a super achievable goal is a good way to go, as you’d much rather overachieve than fall short of an unrealistic target. For those experienced in savings, you might be looking at a bigger goal like a new car or house.

Visualising your end point and naming a goal is an essential first step to building a long-term target.

Next, look at how much you can realistically save a month. This will change from person to person and helps you see how long it will take to reach your goal. In this step, look at outgoings and incomings, and determine what can be cut off to help you bring in the pennies.

By now, you should have a clear savings goal, a name for it, and a target date to achieve it. Write these down somewhere visible so you’re reminded of them several times a day.

Set up a savings account. Create a separate account to house your savings. This will make it clearer what has been saved and avoid accidental spending of saved funds. Consider a savings account that pays good interest rates, as these can add a tiny bit of extra cash on top.

Set reminders. Once your savings plan is underway, set up daily, weekly or monthly reminders of your goal and the target time to meet it. Build some sort of tracker, whether that be physical or virtual, to track your progress and motivate you to continue.

Automate it. In the early stages of a savings goal, you’re all in, ready to save wherever possible. However, as time goes on, life gets in the way, and savings goals can drift into the distance very easily. Alongside reminders, automating as much as possible ensures that even if your commitment falters from time to time, the money still enters your savings account. Set up monthly transfers of an affordable amount into your savings (standing order), ensuring that savings become reliable and consistent. Setting up a standing order is super simple. You can do this in your banking app by navigating to your accounts and making a transfer, at which point you can select to repeat this every month. If you don’t have access to a mobile app, you can set up a standing order over the phone or by visiting your local branch.

Finally, keep that end goal in your head. It can be easy to lose sight of the end goal in the day-to-day, but visualising every so often can bring you back to your plan, block out the noise and focus back on adding much-needed money to your savings.

A Savings Guide Roundup

Saving is a great way to make the most of your cash and potentially treat yourself to a luxury purchase or simply alleviate financial stress. Setting the right goal and sticking to it is key. Follow these steps and commit to saving the pennies:

1. Visualise and name your goal.
2. Work out how much you can save a month.
3. Set up a savings account.
4. Set regular reminders to keep you on track.
5. Automate where you can with monthly transfers.
6. Never lose sight of your end goal.

Remember, saving is a marathon, not a sprint. Commit to the small details in the short term, set up a solid foundation, and watch the money pile up over time.

We’ve covered money saving in a separate piece, with a specific focus on building towards a car purchase.