Are you saving up for something big? Maybe it’s a down payment for your first house or you’ve got your eye on a new car… Whatever you’re saving up for, the best way to reach your saving goals is to be structured in your saving (and spending!) and to set clear goals on how much you want – and can afford – to save each month.
By following these four simple steps, you can ensure you hit your target in a defined amount of time:
Step 1 – Set your goals
- What are you saving for?
- How much do you need to save?
- When do you want to reach your target amount by?
Being clear about your goal and what you want to achieve will give you a clear purpose for your saving, and will motivate you until you reach your goal.
Step 2 – How much can you afford to save?
- How much can you afford to put aside each month?
Take a look at your current income and outgoings and be honest with yourself – how much can you afford to save each month? You should already be saving a certain percentage of your income every month, but try to keep these savings separate – you don’t want to spend all of your savings in one go. Don’t forget to check if you can cut back on your spending in a particular area too.
Once you’ve decided on how much you can afford to save each month, you will also have a more realistic idea of how long it will take you to reach your target amount.
Step 3 – Organise regular payments
- Set up a standing order with your bank
Organise a standing order that automatically takes the specified amount you want to save out of your account every month – ideally just after you get paid – so that you can’t forget. By putting the same amount aside each month, you’ll quickly progress towards your goal, and you’ll be able to look on with satisfaction.
Step 4 – Grow your savings
- Get the best deal on your savings account
Putting aside a set amount every month is fantastic, but why not let the bank contribute towards your saving goal too? By choosing the best savings account for your savings, you can earn more interest on your money and reach your target amount more quickly.