Save for any goal

How do you reach your short-term goals while still saving for long-term dreams?

No matter what your goal, it can help to:

• Work out how much you need to save. Whether it’s a holiday or a home extension, determine how much it will cost and when funds will be required. Then, you can calculate how much you need to put aside each month from now until then in order to meet that goal without having to borrow money.

• Prioritise. Most of us have things we like to buy – maybe it’s your morning coffee for example. Focus on what’s important to you and cut back on the things that don’t mean as much in order to save for that more meaningful goal.

• Make saving automatic. Have your savings put directly into a separate account before you can think about spending it.

• Don’t stop saving. There will always be another gift to buy, holiday to plan, or home improvement to make. Once you get into the habit of setting aside a little money, keep doing it, even after you’ve met your immediate goal.

Here are some ideas for how you can find ways to save for three common goals.

Gifts

• Eat out less often, stay home for dinner, or bring lunch into work more often.

• Plan your meals in advance and keep to your shopping list.

• Look for deals / sales at the grocery store and when shopping for gifts.

• Avoid paying unnecessary bank fees (such as for cash withdrawals).

• See if your employer has any discount programs.

• Save your loose change – it can really add up.

Holiday

• Review your utilities (such as phone, internet), get quotes from other providers and see if discounts are available for bundling services together.

• Cancel subscriptions and memberships you don’t use.

• When it’s time to book your holiday, shop around. You may be able to find a less expensive destination – or just save on flights and accommodations.

Home Improvement

• Shop around for car and home insurance. Consider increasing deductibles/excess to lower premium costs – especially if you’re putting the savings away for future needs.

• Make some money from selling your unwanted possessions. There are websites where you can do this.

The key is to get into a routine of saving for those items you want to purchase without taking on debt.