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TIPS FOR SETTING SAVINGS GOALS

So you’re going to set some savings goals – and get or do some of the things you’ve been wanting to get or do? Nice work! You’ve probably heard that goals should be SMART in order for you to have a better chance of achieving them. All true and very helpful and you should totally take that into account…. but here are some other top tips for setting savings goals.

 

  • Prioritise your goals
    Want concert tix, a new skateboard, a car? Chances are you’re going to have a hard time saving for all of these things at once. Our tip? Pick the one you want the most or the one you want to have the soonest and focus on that. Once you’ve done that you can start on the next thing..

I do want a new skateboard, but I don’t want to miss out on the concert, so concert wins. I can save for the skateboard after that!

  • Know how much you need to save
    It can be helpful to know exactly how much money you need to save. This helps you work out a savings plan and gives you a solid end goal.

Concert tix cost $128 + need to allow $12 for the bus/train so all up I’m looking at $140 dollarydoos

  • Know how much you can save each week
    If you have a regular income from a job or pocket money this is easier to know. Work out how much of what you get you can set aside for this goal. If your income is more irregular, it can help to work out how much you want to save each week and then work out how to get that.

I get $100 each week from work and pocket money. I need to pay for my phone, I want some money for school lunches, the movies and other stuff - I can probably save $5 each week?

  • Work out a savings plan
    If you know how much you need to save to reach your goal and you know how much you can save each week, you can work out a savings plan. Just divide the amount you need by what you can save each week and you can work out how many weeks it will take for you to save enough.

Like this: $140 ÷ $5 = 28 weeks

  • Check the timing – does it work for you?
    So you can buy your concert tix in 28 weeks? Perfect… except the concert tickets go on sale in 10 weeks. When you want to save a certain amount of money by a specific time, all you need to do is divide the amount you need by the number of weeks you have and you will know how much you need to save each week. If that amount fits in with what you get each week, awesome – thumbs up. If it doesn’t, you’re going to have to work out how you can change your spending or earn some extra cash over the next 12 weeks. 

$140 ÷ 10 weeks = $14 each week. Ok.. phone is non-negotiable, might have to skip a movie and take-out for a bit… so worth it!

  • Track your savings
    Rather than setting your goal and then forgetting about it, it’s important to keep track of how you’re travelling. For two reasons – keeping track can help you stay focused and keep your goal top of mind AND also, if for some unexpected reason you fall behind in your savings you might be able to adjust your savings plan so you still reach your goal on time.

When you get to actually spending the money you have saved up, be sure to shop around and make sure you’re getting the best price on whatever it is you want to buy. You could use the time you are saving to do some detective work on this…


SET SMART GOALS (says everyone, always)

S = Specific (include the detail)

M = Measurable (have some way to track how you’re going)

A = Achievable (it helps if your goal is actually possible to reach)

R = Relevant (is it something you really want)

= Time (set a time limit) 


 

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Any advice in this information is general and has been prepared without taking account of your particular objectives, financial situation or needs. Before you act on any advice you should consider whether it is appropriate for you. IMB Ltd trading as IMB Bank ABN 92 087 651 974 AFSL/Australian Credit Licence 237 391