Not many of us have that kind of jobs that can easily provide us enough cash to cater for our needs.
But with that little income you make, you can still be able to make your dreams come through with savings goals.
Money is hard to come by nowadays and this is why it is very important to find away to regularly save, even if you can only manage a small amount.
When your personal circumstances change unexpectedly, having well-maintained savings would help to reduce the pressure on yourself should you need extra cash to finance certain needs.
Below are tips on how to set your savings goals:
1.) Make A List Of Your Saving Goals
Regardless of how realistic or unrealistic your goals could be, don’t hold back, just put them down and work towards achieving your goals.
Some goals can be described in a couple of words whilst others may need to be described in a short paragraph or two. You don’t have to worry about covering all of your goals in one go, as you can always update your list at a later date as more ideas come into your head.
You might want to include such things like a dream holiday in the Caribbean that contains all the hallmarks of a tropical paradise and a healthy house deposit (new home doesn’t come cheap, so if you are a first-time buyer, you will need a good savings plan for your deposit).
Other things you may also have in your list could a new car, a future for your children (if you want your children to go to university, it makes sense to start to put something aside) and probably savings goals towards investment opportunity.
Put whatever you might have in mind together in your savings goals list and start working on how you will make them come through.
2.) Assess And Prioritise Your Savings Goals
After drafting your wishlist, choose just a few items to save for first. Organize them from most important to least important. This is what will make your task much easier to achieve.
By prioritising savings goals and focussing on the highest priority, it is possible to achieve that goal in half the time than it would take when saving for two goals at once.
So taking all of the goals that you have written down, start listing them in order of priority, starting with the highest priority first:
- - Highest priority goal
- - Second highest priority goal
- - Third highest priority goal
- - Fourth highest priority goal etc.
3.) Pay The Minimum
For the “most important” item on your list, pay more than the minimum each month. For this item, save as much as possible. When you have completed saving for it, move on to save as much as possible for the next item.