Smart Thinking: Saving Money For The Future
While we are all aware of the importance of putting away money for the future, the reality is that saving doesn't come naturally to most of us. When it comes to putting money away, setting "smart" goals is the first step in finding the motivation to save.
What are "smart" goals? SMART is a popular acronym for specific, measurable, achievable, realistic and timely. These five characteristics are vital for setting goals and the acronym provides an easy way to remember each of them.
When it comes to saving money it is important to make sure a goal is specific. Rather than telling yourself that you need to put away a little money each month, set a specific figure. This will give you a balance to base the rest of your monthly spending around, as well as a measuring stick to see whether or not you are achieving it.
Why is it important to have measurable goals? If a goal is not measurable, it's difficult to know whether you are actually achieving your goal. A measurable goal means that you will be able to monitor your success and hopefully this will give you a boost to continue saving.
To really achieve a goal it is important to take an action-orientated approach and hone in on all the proactive steps you need to take to achieve that goal. Ask yourself what actions are needed in order make this ambition a reality. From deciding how much to save, to deciding which savings accounts offer the best deals - all of the actions you take will form a vital part of achieving that goal.
While breaking your goal down into mini-actions is extremely important, it is even more important to make sure the goal set is realistic. Is the figure you have set yourself going to over-stretch your budget? Do you have any major outgoings over the next few months which could hinder this goal being achieved? If your goals are not realistic, they will only cause you anxiety; therefore, it makes more sense to save little and often, as opposed to setting an unreachable target.
The final step to smart goal setting is making sure your goals are timely, which refers to having an overall timeframe for your goal. It can also help to set some timely milestones to monitor your progress along the way. In a similar way to setting mini-actions towards your overall goal, setting mini-milestones breaks the process down into shorter, simpler steps - making the goal seem all the more achievable.
When considering your savings and the savings accounts which will work best for you, it is all about thinking smart. While it may take a little extra time to set your goals the smart way, it could pay dividends in the long-run.
What are "smart" goals? SMART is a popular acronym for specific, measurable, achievable, realistic and timely. These five characteristics are vital for setting goals and the acronym provides an easy way to remember each of them.
When it comes to saving money it is important to make sure a goal is specific. Rather than telling yourself that you need to put away a little money each month, set a specific figure. This will give you a balance to base the rest of your monthly spending around, as well as a measuring stick to see whether or not you are achieving it.
Why is it important to have measurable goals? If a goal is not measurable, it's difficult to know whether you are actually achieving your goal. A measurable goal means that you will be able to monitor your success and hopefully this will give you a boost to continue saving.
To really achieve a goal it is important to take an action-orientated approach and hone in on all the proactive steps you need to take to achieve that goal. Ask yourself what actions are needed in order make this ambition a reality. From deciding how much to save, to deciding which savings accounts offer the best deals - all of the actions you take will form a vital part of achieving that goal.
While breaking your goal down into mini-actions is extremely important, it is even more important to make sure the goal set is realistic. Is the figure you have set yourself going to over-stretch your budget? Do you have any major outgoings over the next few months which could hinder this goal being achieved? If your goals are not realistic, they will only cause you anxiety; therefore, it makes more sense to save little and often, as opposed to setting an unreachable target.
The final step to smart goal setting is making sure your goals are timely, which refers to having an overall timeframe for your goal. It can also help to set some timely milestones to monitor your progress along the way. In a similar way to setting mini-actions towards your overall goal, setting mini-milestones breaks the process down into shorter, simpler steps - making the goal seem all the more achievable.
When considering your savings and the savings accounts which will work best for you, it is all about thinking smart. While it may take a little extra time to set your goals the smart way, it could pay dividends in the long-run.
Victoria Cochrane
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