When you’re saving money for a large purchase, it can often seem like your goal is too far away to reach. It can be tedious trying to downsize your lifestyle to reach your financial targets faster. However, there are a few methods and techniques that you can adopt to speed up the process.
Whether you’re saving up for your next holiday, a new car, or even a mortgage deposit, we’ve got you covered. In this guide, we’ll be exploring five steps that you can take to reach your savings goals faster. Keep reading to find out what they are…
Create SMART Goals
The SMART goal technique is a way to ensure you are setting attainable goals. More specifically, this acronym stands for Specific, Measurable, Achievable, Realistic, and Timely goal setting. For example, instead of saying “I want to save enough to buy a car”, you should say “every week this month, I will put away £10 into my savings account for a total of six months”.
Track Your Income and Expenses
When you’re budgeting, it’s important to know exactly where your money is going. Once you have a rough idea, you can see how much money you should set aside and use a savings calculator that includes regular depositsto calculate the time it will take to reach your goals.
Sacrifice a Daily Luxury
If you want to speed up the process, it may be worth sacrificing some of your daily luxuries. Having your morning cup of coffee at home instead of your local coffee shop could seem rather pointless. However, if you save $2.75 every day, you can save up to $82.5 each month, and almost $1,000 each year!
Add an Additional Stream of Income
Another great way to reach your savings goals faster is by creating an additional stream of income. This can be something small, like picking up some extra shifts at work, or something more substantial, like renting out a spare room in your house. Other ideas for additional income include tutoring, freelancing, babysitting, or odd jobs found on craigslist.
Find More Efficient Bills
When it’s crunch mode, it’s a good idea to evaluate your expenses and see which areas you could improve upon. Don’t be afraid to switch energy providers or phone companies in search of a more affordable option. More often than not, phone companies will offer you a cheaper deal to convince you to stay.
All in all, it’s important to remember that consistency is key. If you manage to hit your savings targets one month but completely ignore your goals the following one, you’ve essentially lost a whole month. The best way to chip away at your savings goal is by investing your money on a regular basis. Don’t forget to set yourself sizable yet realistic targets, as this is what will keep you motivated to continue. Before you even know it, you will have reached the light at the end of the tunnel.