Establish savings goals for a better future

Get into the habit of saving and start establishing clear goals. It pays off.

05:48 09 January 2014

Having a savings goal is a great way to provide motivation. Everyone needs something to focus on; it can help give you that needed willpower to control impulse spending. In order to make a goal happen you have to have a plan. This means knowing what steps you are going to take to make your dream happen and being willing to make the necessary sacrifices to ensure your success. 

 

To create a plan you need the following things:

 

 

Create a list of your goals

All goals including savings goals need to be written down, it does not matter if they are large goals, small goals, or completely unrealistic. Write down everything you want to accomplish. 

 

Prioritise your goals

Put your savings goals in the order you want to accomplish them in. For example, if you want to get rid of credit card debt and purchase a house, getting rid of the credit card debt will make it easier for you to obtain the loans necessary to purchase a home. This means that your priority should be clearing your debt first. Accomplishing this goal will mean that you have more money to put towards purchasing a house. 

 

Create a plan for each of your savings goals

Start with the goal that you have decided has the highest priority. Place the value of the goal first, for example, how much are you going to need. Then consider a reasonable time period. Remember to keep these goals within what you can afford or what you can budget. 

 

These are just a few steps to get you started with your savings goals. You also need to keep track of your goals and your progress. Make sure you have the money you need to get what you want with a savings goal.