Savings Goals don’t have to be everything significant squished into one. Separating your savings goals into smaller, bite-sized chunks could mean that you have more wins in your savings journey and are more likely to stay with it.
Many people might start their savings journey because they want to be debt-free. This is a great goal to have, but realistically, you may want to achieve many hurdles and smaller goals. What if you need a new car? What if you have a child about to enter university? Is there a big holiday dream that you want to achieve? These can affect your end budget goal, but making small goals will succeed the overall journey.
Setting up short-term savings goals
What exactly is a “short-term savings goal”? A great question that we assumed you asked for this paragraph. Some examples of a short-term savings goal are establishing or topping off an emergency fund, home or car maintenance, a large ticket purchase such as a new TV or white goods, a holiday, or annual events like Christmas and birthdays. They tend to be savings goals that you’ll want to action anywhere between a few years or the following year.
Ensuring that you are putting money away for these events means that you are creating less stress, less need to bring out the credit card, and getting into debt while achieving your overall savings goal in the future. A bit of paperwork now for stress-free living later? Sounds good.
Next stop; medium-term savings goals
A medium-term savings goal is a goal you’ll have in the next two to five years. These are goals that you’ll have to put severe consideration and savings effort into.
Examples of a medium-term savings goal could be a new car, a home deposit or renovations, or a significant family holiday. Just because you’re saving doesn’t mean you can’t live. Putting effort into ensuring that those goals are covered will mean great success for your budgeting, saving, and overall lifestyle.
Finally, the long-term savings goals.
The long-term ones are the big ones! These are the ones that sometimes are “out of sight, out of mind” but need to be the significant factor in all of your saving goals. Examples of long-term saving goals could be your mortgage, investments, or superannuation.
These goals will take years to save for, but they, of course, will pay off in spades, or dividends, in the end.
Separating your savings goals into different categories might seem like a hassle, but it’s essential to see what you can achieve now rather than ten years from now in your savings so that you can be sure to celebrate the wins when you get them.
If you would like some help in figuring out how to best attack the long-term savings goal of your mortgage, we can help you with that! Contact our team today, and we can show you how you could save thousands and years off your mortgage.