Saving money is one of the most basic money tips you’ll ever get, but many of us don’t know where to start – especially when you don’t have much left over after you’ve paid all your monthly bills.
Setting a saving goal is a great way to give yourself direction, focus and remain motivated. Goals also help you track your progress, overcome procrastination and hold you accountable – even on days when you don’t feel like you’re ever going to get there. While the process of goal setting is important because it helps identify what's truly important to you, pursuing your goals is important because it builds self-efficacy and helps you develop specific skills and know-how to achieve your goals.
“Begin with the end in mind” – Stephen Covey.
Start by setting goals that motivate you – this means making sure that they are important to you and that there is value in achieving them.
Next, think about what you want to accomplish within the next 6 to 12 months. It might seem like a daunting task, so set aside some time and give yourself a deadline. Once you’ve decided what you want to focus on, it’s time to create your game plan.
Your savings goal may be for a deposit on your home, saving for your once-in-a-lifetime trip or paying for your next car or another goal that is relevant. Once you know what you are saving for, you need to determine how much you need to save each month to reach each goal.
Lastly, make sure you have regular check-ins. By setting goals for yourself, you are able to track your progress and adjust your game plan if your priorities change. Most people aren't good with deadlines that are 3 months away, so whenever you're given a long-term goal, break it down into several short-term goals so you can complete a chunk of the larger long-term goal every week or even every day.
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