Setting goals will make a massive difference to your savings

by Ed Bowsher on 02 November 2011  |  0 comments
Tweet

If you set yourself regular savings goals, you'll probably end up saving more cash.

I get loads of press releases sent to my inbox every day and most of them are rubbish. Often they’re a transparent attempt to persuade me to give a free publicity to loan sharks, ‘get rich quick’ courses, or some other dodgy outfit. 

But every so often, something good arrives. I particularly liked a recent release from NS&I, the government-backed savings provider. 

NS&I has done a survey that shows that savers who set themselves goals manage to set aside more money. In fact, savers with targets save on average an extra £42.50 a month compared to those without a savings objective. That adds up to an additional £500 a year. 

Savers with goals are managing to set aside almost £140 each month compared to £97 a month for those without a goal. 

Those are striking figures and I think they really underline the value of setting goals. In fact, I think that savers should set two goals. Firstly, what you’re trying to save for – maybe a new car or a retirement nest egg. Secondly, how much you plan to save each month. Go for a target that is tough but still realistic. 

Of course, I realise that finding money to put aside each month isn’t easy. If you’re looking for tips on how to do that, check out my video: How to save when you’ve got no money. 

And if you’ve no idea how much you can afford to save, it’s probably time to start budgeting. Budgeting should enable you to reduce your spending and save more money. One of the best budgeting tools out there is lovemoney.com’s Tracker tool. Why not give it a try?