Get SMART with your savings

9 Mar, 2020

As any CAP client can tell you, saving for your future needs can be life changing. Whether you’re putting aside money for next year’s Christmas gifts or car registration, or you’re aiming for something a bit bigger, making a savings goal is the best way to ensure that the money is there when you need it.

If you’ve ever made a New Years’ resolution, you’d know just having a goal isn’t enough. Read on to get SMART with your saving and set a goal that actually works.

You’re far more likely to reach your savings goal if you have a specific target in mind. Are you saving for a car? A house deposit? Christmas gifts for the family? Be as specific as possible: how much do you want to save and what are you saving for?

How much are you going to deposit into your savings account, and how often? How are you going to celebrate when you reach your savings milestones? Have a plan to measure your progress toward your goal and reward yourself at intervals along the way.

Ensure your savings goal is actually within your power to achieve. Completing a budget will help you gain a better understanding of how much you can realistically save each month. Saving for a house deposit is a great goal to have, but doing it in three months is likely more than you can achieve. Set yourself up for success by ensuring your goal is achievable.

Choose a goal that is meaningful to you, and creatively think of ways to remind yourself why you’re saving! Put a photo of your dream home on the fridge or set it as your screensaver at work. If you’re saving for something that is important to you, you’re far more likely to achieve your goal.

Set a date you plan to achieve your savings goal. Write it down; put it in your calendar. Get excited as you tick off your savings milestones month by month and watch as the date approaches. You’re almost there! How great is it going to feel when the date actually arrives?

Want to learn more about how to make a budget and set savings goals? Find a free CAP Money course near you (or online) and start your journey toward financial freedom.