Setting My Savings Goal
Setting a savings goal felt a bit like sticking my finger in the air, plucking a number out of the sky and seeing if it was achievable at first. But I suggest taking the time to work out how much money you are currently spending and could cut back on. That is where you will find that extra money that can be put away into your savings account.
The hardest part is setting some time aside to do it properly. Get yourself a pen, log into online banking, and write down the following;
- What monthly payments do you have that absolutely cannot be missed?
- How many of those direct debits are subscriptions that you could live without?
- How much disposable income do you have left?
- Now look at a few months worth of statements and categorise your spending habits. What do you spend most of your money on, and what can you live without?
Below are my workings out to see how much extra money I can source from my own current account and what I can boost my savings with… Hopefully this real life example will help you to conduct your own little audit!
So looking at what my money has been going on has actually come as quite a shock. Who needs to be that well fed?! Let’s see where I am going to shift my spending, and what budgets I am going to set myself going forward.
It is so important to make sure you have an achievable goal. Set your sights too high and you will most likely fail, and that’s not good for anyone’s ego. The Project Manager in me wants to tell you to be SMART.
Specific : I want to save £8,000
Measurable : I will be looking at support from an app to track my spending, and my goal will be tracked right here on The Home Endeavour
Agreed upon : Mike and I have discussed this together and he fully supports any changes to our lifestyle that means we can save more money
Realistic : The savings goal and monthly budget have been calculated to ensure it is achievable (with the right frame of mind!)
Time driven : I will save £500 a month to reach my target by June 2018
So now I know my goal, how I am going to reach it, and when! All that’s left to do is come up with ingenious ways to go without some of the luxuries I am used to, and how to utilize what I do have more effectively. That’s where the fun begins! (See how I am making this a positive, I must be growing as a person already).
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