People who set a money savings goal save faster than those who don’t!
Here’s how to get in the habit of setting saving goals that are reachable so you can live the life you want.
Choose a Specific Reason to Save Money
You need to determine what you are saving for. Is it for a gadget, vacation or a house? Do not use abstract names for your goal, this helps you realize the reason you started saving.
Names such as Trip to Kigali, iPhone X, Marvel Movies 2019 are better names for your plan.
They include the specific reason why you are saving and they keep reminding you why you need to achieve them.
Measure The Progress of Your Goals
Measurable savings goals means that you identify exactly how much you want to save, for how long and at what time should you achieve it.
Pennysmart has done the hard lifting here, you can set precise monthly amounts, goal amounts, and duration, so you can measure your degree of success.
I want to save GHS6000 to travel to CapeTown in the next 6 months so I will have to save GHS1000 every month.
I want to save to travel to CapeTown in the future.
Which sounds more interesting?
Set Goals You Can Actually Achieve
C'mon guys, let's be honest, you cannot create an iPhone X goal and select a monthly saving of GHS20.
If you set a goal that you have no hope of achieving, it will only demoralise you and erode your confidence. Also setting goals that are too easy gives you no sense of achievement.
Align You Goals In the Same Direction of Your Life.
If you are a superhero fanatic, you should save towards the 9 movies coming out in 2019 e.g. SuperHeroes 2019 rather than having a goal that does not align with your interests.
Savings goals should be as relevant as a photographer's New Nikon D7500 goal, a digital artist's Wacom Cintiq Touch goal or a food connoisseur's 50 Exotic African Meals. These are achievable because they are part of the life of the aforementioned people. Saving towards these things would not be hard for them because they need them or would do them either way. Align your goals to your life ambitions or passions.
When to Achieve Your Saving Goals
When you have all the above sorted, one thing that is crucial is time. Everything has to end, this include your savings goals. Short terms goals are simple, saving to buy a bicycle worth GHS200 may take 4 months of saving GHS50. However, saving towards retirements may be tricky. For long term saving goals, add a benchmark and a date e.g. I should have saved GHS50,000 in 5 years time towards retirement implying at least a monthly saving of GHS830.
Pennysmart allows you create a specific goal with a name, measure based on monthly commitments, target amount and when you want to achieve.