Why Setting Savings Goals Could Help you in the Long Run
Money

Why Setting Savings Goals Could Help you in the Long Run

An important part of an effective budget is to set goals and use them to help you achieve your savings. Your goal could be something as simple as saving enough money for tickets to a football match or concert or, even as big as a new car, house or university. Budgeting makes it much easier to establish both long and short term goals whilst also allowing you to track your progress towards them.

Setting yourself financial goals is a very important factor when it comes to managing your money wisely and it will establish a framework for your savings and spending decisions. If you’re one of those people who are just terrible at saving, then check out this guide by the Money Advice Service on how to get into the savings habit first.

If you want to save for a specific item, then it is vital that you think about your budget. It is no use planning to put a couple of hundred pounds away if you only have pennies left of disposable income after you have paid all your bills. This will only discourage you, if you don’t hit your target.

Write your goals down and then start dividing this by the amount of money that you think you can save each month. You should do this because it will give you the number of months or years that it will take you to reach your goal. Make sure you find yourself the best bank account too because if you leave your money in your current account you are very likely to dip in and out of it. Open a specific bank account for the money that you want to save.

Why Setting Savings Goals Could Help you in the Long Run (1)

If you are planning on putting away a set amount of money each month then you should consider setting up a standing order so that this way, the money goes directly into your savings. This is going to stop you from getting towards to the end of the month and spending it on something else.

With all this saving there is a high chance that your financial position will change and the amount of money that you are saving will probably change too. An example of this would be if you get a pay rise in your job, if this happens then you should adjust the amount of money that you put away. This means that you more than likely won’t notice the difference. You should also check that the goal that you are saving for is still going to give you the best result that you could hope for.

Remember, there will be lots of unplanned life events that could crop up now and again that could put a pause on you completing your goals. So get that emergency fund going so you have yourself a backup plan.

Stuck on what sort of goals to set yourself? The Readers Digest have put together 6 tips to set and meet your savings goals, check them out and give them ago.


*This is a collaborative post.

This article has 120 comments

  1. Margaret Gallagher

    Something o learnt a long time ago

    Rainy days come at the most unwanted times

    Always have a nest ready

  2. robin rue

    We have an emergency fund and I think everyone needs one. You just never know when something will happen!

  3. alison fisher

    I am much better at this now am a little older was useless with money when i was in my twenties

  4. Amber Myers

    I always try and set money aside. You just never know what can happen, and I’d prefer not to put a lot on credit cards.

  5. Emman Damian

    I always have a buffer savings with me. It’s extremely useful for emergencies. I also manage some incidentals on my credit card so I can budget it the following month.

    • Sarah-Louise Bailey

      My Mum always taught me to have a buffer in my bills account as well even if it’s only a little you never know when they might be a bit bigger than normal.

  6. Samantha Donnelly - StressedMum

    Great advice, there is always an emergency when we could least do without it, and having savings does help. Once you get in the routine of saving it does become a lot easier x

  7. corinne & kirsty

    You are absolutely right and that’s something I should really start to think about. Life is unpredictable and you must be prepared to face anything so saving is really important

  8. candy

    We set goals when we first were married. Having enough money to build a house and be debit free. We have achieved this goal after years of hard work.

  9. Tomi C

    Savings is so important and it’s a lesson best learned early. Money management skills learned early really do help in the long run with credit, school, buying your first car and home. Thanks for sharing.

  10. Kimberly

    I am so glad that my husband and I had a rainy day fund when we first got married. I injured my back 3 months after we were married and I was unable to work. Since then we’ve always kept a small fund set aside for times like this. And we’ve had to use it unfortunately due to health problems. Everyone needs to do this.

  11. Janet

    We set savings goals when we were first married. Now that I have daughters who are young adults we have been trying to get them in the mindset too.

  12. Marysa

    We all need goals when it comes to saving. It is too easy to get caught up in spending or not budgeting and end up not making any progress.

  13. Lisa

    Great advice on saving money. I can definitely use this to save!

  14. Rebecca | AAUBlog

    I’m all for setting a goal, for anything I want to achieve really. But it does definitely help with money when there is something specific to work towards 🙂

  15. Stacey

    Savings are so so important. You just never know what’s round the corner, what might stop you working or mean your costs go up. I’ve had saving instilled in me from a really young age and my husband and I are pretty strict with ourselves. We also have JISAs for both our boys!

  16. Lilinha

    Setting up a standing order is a great idea to make sure saving happens on a monthly basis.

  17. Pam Wattenbarger

    Savings goals are so important in my opinion. I always do better when trying to reach a goal.

  18. michele d

    Saving money these days can be so hard. Thank you for these helpful tips.

  19. Tali Love

    Saving is so important.
    Rainy days are unpredictable.

  20. Danita

    Saving is one of the things we tried to teach our children. It’s so hard in the gotta have it right now world.

  21. rosemary palmer

    I wish I would have done more. Now I save my $5 bills and all change. It’s amazing how fast it adds up to. At a certain point, I use half of it to pay on a bill and keep the other half in savings.

  22. Pat

    setting goals especially for finance is very important, it keeps me within my budget and also see the overall picture!

  23. Liz Mays

    Opening a specific bank account just for the savings will help a ton. It’s good to have it out of the way and building over time.

  24. Claudia Krusch

    We have an auto pay set up for our savings each pay, I also have an account that rounds up each purchase and puts the change in my savings account. It really adds up fast.

  25. Patrick

    Good goals to have and strive for,having savings is a smart play. It is hard but putting some away a little each paycheck is critical.

  26. Rhian Westbury

    I always set holiday savings goals as I like to know how much I need to save so it means more when I get payments through as I can stash them away x

  27. Sally

    I use a lot of different ways to save. I have premium bonds which is ideal as you can’t just ‘dip’ into them at a moment’s notice. It’s been a good way to save for me.

  28. Sandy N Vyjay

    Saving is very important. There are so many major events in life when one needs big amounts of money. Saving for these is so helpful.

  29. Helen Costello

    I thoroughly agree with setting up a standing order if planning to put away each month – The temptation to spend is just too great if the cash is there ready to spend.

  30. The Jedi Wife

    We currently set aside a certain amount every month although it isn’t as much as I would like. We live frugally but the cost of living here is so high, but my husband is very limited in where he can work due to his selected career. Thankfully I’m starting up a new position next week, albeit part-time, so it should loosen up funds more for us!

  31. dawn

    it is so incredibly important to save, and to make saving a habit over time. great lessons here!

  32. Sondra Barker

    Goal setting is for sure the best way to ensure success! I 100% agree, especially when it is so tempting to spend all of our money on good food!

    Sondra xx

  33. Lori Vachon

    Life happens, and so do unplanned occurrences, they just do! Having a back up savings is always an important goal.

  34. Kim

    I so agree with you that it’s great to have savings goals. I probably should do a better job of that myself.

  35. Afshan Nasim

    This is a great post and it is very important to save for a rainy day. Better to do than caught out and life sure does have its ups and downs. A goal for me is to save for my son’s university. Thanks for sharing.

  36. MELANIE EDJOURIAN

    I need to start putting aside a set amount as we are saving for a car or at least e are supposed to be. I don’t see much saving happening at the moment, opsy.

  37. Heather

    I have to set aside money. If it’s in my general checking account, it gets spent. But if I move it to save, I’m better about leaving it there.

  38. Amanda Schreiber

    I have an emergency fund that is decently full, but I also have some CC debt that I’d like to get rid of. My savings goal plan is to erase all my CC debt before my wedding next fall!

  39. Nayna Kanabar

    This is an excellent post and I totally agree a standing order straight into a saving account on payday is a brilliant idea as there is less chance you will spent all the money.

  40. Peachy @ The Peach Kitchen

    Saving money is really important. You won’t know what will happen in the future that’s why i’s important to have one.

  41. Alicia Taylor

    I manage my son’s SSI for him and he didn’t understand why he couldn’t have all the extra for spending money. However, he learned that lesson when his cat ate something she shouldn’t have. Had he not had the savings, we would have had to put her to sleep.

  42. Anjanette Young

    These are some really good tips something I should really look into doing. Savings has been a hard thing for me to do.

  43. Melanie

    This is so true. But I seem to get worser as I get older. I used to save well when I was younger but now I’m not so great x

  44. Jaime Nicole

    Savings goals can be real lifesavers if you get in a financial pickle. You never know when hospital bills might pop up or other emergencies could emerge.

  45. Karlee

    I definitely like the idea of having a separate account and having that money come right out of the paycheck and go into that other account automatically before you can even see it to spend it! Great reminder to increase your savings if your income goes up too it should be some sort of percentage of your income so when it changes you should try to remember to put away more so you can save more yet not feel like anything has been taken away from you!

  46. Jemma @ Celery and Cupcakes

    I always try to have a savings plan, it can be difficult when something unexpected pops up!

  47. Ali - We Made This Life

    Setting savings goals is a great idea. We’ve only just finished paying off debts and that has always been my goal, but I can see that I should shift it now to savings goals!

  48. WhatLauraLoves

    This past year I’ve really got into the habit of saving and its really helped me to be able to affordably pull out for things like my car insurance and tax etc. xxx

  49. Fritha Strickland

    I love the idea of this, I’ve been getting a bit better with saving this year but I’d love a better plan of what I’m doing with my money x

    • Sarah-Louise Bailey

      Good luck with your saving and I hope you get a plan going for your money.

    • Rachel Craig

      Money does seem to go so quickly. There have been times of price increases. Fuel being a major one which impacted on the price of goods (food,etc) due to transport costs.

      We have been told of zero hour contracts, wage freezes, etc. So it seems no wonder that money goes so quickly. Our quality of life has been reduced. Yet there have been Bankers Bonuses. Bank staff still do get bonuses, as do some other employees:- Though not all. Billionaires have employees on zero hour contracts.

      It seems the gap between rich and poor has widened. Research has proven that that is detrimental in regards to Health, Crime, etc, etc.

  50. Cynthia Nicoletti

    Great advice, we all should plan for our savings in the future.

  51. Agata

    We swapped our savings for gold (in bars, not imaginary one in the bank somewhere) so we can always sell it in case we need money for something unexpected.

  52. Angela Ricardo Bethea

    This is a very good lesson to learn especially for kids. It totally helps in the long run when something happens good or bad that you need money for it.

  53. Linda Hobbis

    We’ve always been savers. I couldn’t imagine not having something put aside for a rainy day. I look at all the people near us driving around in big Range Rovers and on endless holidays and I can’t help wondering how they afford it.

  54. TColeman

    Setting goals is so important. There is seriously nothing better than seeing your money grow interest!

  55. Krystle Cook

    We made a savings account not too long ago and I love being able to put some money away. Sometimes we need it for an emergency but other times we get to do something special.

  56. Louise

    Completely agree with this, Sarah! I learnt the hard way that saving for a rainy day is an essential part of growing up!!

    Louise x

  57. Denay DeGuzman

    Saving for a rainy day and for retirement is very important. Setting savings goals is so important! And starting today rather than tomorrow – essential!

  58. Ophelia Tang

    I love your post. Saving as early as possible is a sure thing for financial stability in the long run. Thanks for sharing.

  59. Katherine G

    This is a great article. I was just talking to my husband about how is having savings has saved us on so many occasions. It is just great to have.

  60. Lisa prince

    im really bad for saving as soon as i hae savings there something either breaks or is needed so the money goes on something i wasnt saving for in the long run , we are currently trying to get xmas out of the way so we can save for our dream static holiday home though so this is very useful thank you

  61. Kara

    We don;t have credit cards so have to save for what we want – it gives us a goal 🙂

  62. Olivia

    I have recently set up a savings account, need to start saving for a house deposit 🙂

  63. Rebecca Swenor

    It really does pay off to set savings goals for yourself. I will have to check out the tips from Money Advice Service first. Thanks for sharing this awesome post and tips.

  64. Tee Simpson

    I try to do this but something always seems to crop up when ive nearly reached a goal

  65. Marie Evans

    It’s a true saying ‘Take care of the pennies,And the pounds will take care of themselves’ For a while now at the end of the week before I draw next week’s money all £1 coins & 20ps I have left in my purse I put in a container for birthdays & the rest coppers etc I but in a telephone tin.Surprising how it mounts up.

  66. alice lightning

    such great advice very hard to save try but in my case never ending payout

  67. Rachel Craig

    Do not have the opportunity to save at present time. Also feel dis incentivised:- As Bank Accounts have extremely low interest rates for Savings Accounts.

    I can recall as a child my pocket money very rarely got to my pocket. We had shops next to home. My brother would give me pocket money in front of his friends, and they had fun watching how quickly I got to the shops and spent it. Usually spent on comics and sweets. I had such fun in those days, no Responsibilities.

    When I decided on future plans :- I learnt to save towards them. I took on a Saturday job as I wanted to buy my family Christmas presents. I fell that they had been kind to me, and I wanted to Reciprocate.

    When I decided on going to college I opened a Bank Account, Savings Account to save towards buying books, etc.

    I feel culture has changed so much, as now many are seeking Riches, Celebrity Status, Better for Themself. Whereas I grew up in a time when we spoke of what we might do for a living. I think we were happy to live and socialise with those around us. Now many do not know their neighbours :- Possibly due to 24 hour society, shift work, commuting to work, taking work home, working from home, targets and pressures of work. Whatever happened to there being more leisure time due to advancement in technology, etc. Bankers Bonuses, etc has probably put the majority off putting any money into Banks as Savings, as little to no interest.

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