Creating your Savings Goals

If you're just starting out, you may not know what to do or where to go when it comes creating your savings goals. But don't worry, you've come to the right place.

I want you to take a pen/pencil and a piece of paper and write down everything you want to save towards in the near and distant future. These can be anything from buying property, that nice pair of shoes you saw at Payless, retirement, emergency fund or purchasing the car of your dreams. Estimate how much you think each would cost and write it done next to them. If research is necessary, don't be afraid to do it.

Now that you have your goals in mind, and on paper, lets be more critical about making them realities. Creating your savings goals is primarily a balancing act between the following criteria:

• Time Frame

• Income

• Tracking & Accountability

• Life Changes

Time Frame

The length of time that you want to achieve your goals in can help you to determine whether your goals are achievable or not. Savings goals are usually divided into three categories: short, medium and long term goals.

Short term goals are achieved in one year or less like buying a piece of furniture for your house. Medium goals take up to five years like buying a car and long term goals take over five years to be achieved including buying a home or property.

When you determine what you want to save towards, note how long it may take you and which category it belongs to. This also has with prioritising each of them.

Income

Your income is the biggest factor in achieving your goals. If you don't make enough money, after spending on necessities, you may not have enough to make your financial dreams come true. Often times, you will have to sacrifice or adjust your goals to reach them. Alternatively, finding additional sources of income, like another job, a side hustle or starting a micro business can help to fill any financial gaps.

Tracking & Accountability

How do you actually stick to your savings goals? By tracking them. Each day/week/month, you can determine how much money you will allot to each savings goal.

IMPORTANT: Remember to save for multiple goals at the same time. This is so you won't end up spending all your savings on one thing and not have any left for emergencies or the things that pop up, like the need for a new text book for school.

Keep on track by using a savings journal, excel spreadsheet or an app on your mobile device or computer. Every time you transfer money to your savings, whether in a piggy bank, jar or a savings account, make a note of how your savings have increased.

Remember you can't take any funds from these unless its your emergency fund and it's an emergency. Only in extreme circumstances should this be allowed.

TIP: To make the process easier, you can set up automatic transfers from your checking account to your savings account when your pay check is deposited. A specific amount will be transferred each time before you even start spending.

I personally use an app called iSaving but you can find others like it here

Life Changes

Last but not least, remember that your savings goals will have to be readjusted when things in your life change and affect your budget, sometimes dramatically. Starting a family, losing or getting a new job, or getting a raise will change your goals. Some may become irrelevant, some will take longer to achieve than expected and new ones will pop up. But its necessary for your goals to be as flexible as we are.

But always remember, you can achieve your goals with a mix of commitment, resourcefulness and patience.