Setting Short Term Goals for Long Term Savings

Saving money for the long term can be one of the hardest things to sustain and accomplish over a prolonged period of time. With all the various emergencies, repairs and replacements that can pop up throughout the year it can often be a near impossible task to keep your finances in check. Whether you’re saving for a new home or putting money away to help with your children’s university fees, the setting of short term goals is the one key guideline you must follow if you wish to remain focused and committed to reaching your end target of long term savings.

 Why Short Term Goals?

By setting short term goals you are significantly more likely to reach your targets of paying money into a savings account. This is mainly because shorter goals seem easier to reach, making saving seem like less of a mountain to climb and more of a mole hill. If you can break your long term saving plan down into smaller and more digestible chunks, you will be more motivated to stay on course, as it will actually feel like your achieving something on a regular basis.

How and What to Set as Short Term Goals

Everyone has different motives and reasons for saving, so it’s important to make sure that you set your short term goals correctly so that they best suit you. All of your goals must be realistically attainable and constrained within a set time frame to make sure you keep on track. Setting a timeline of when to have certain amounts saved by is one of the best options you can use. By doing so, you give yourself clear deadlines that can’t be missed, when you do accomplish them, you will also get more of a sense of achievement, helping you to keep saving.

To help meet your goals you should also try and keep reminders around your home and work place so it’s always fresh in your mind. Temptation is often he killer when it comes to saving, as you will no doubt have urges to spend some cash on new clothes and gadgets from time to time. By constantly reminding yourself of the importance of what you’re saving towards, it will be easier to restrain yourself from any impulse purchases.

When saving towards your goals it is important to consider the money you’re paying in as a bill that has to be paid, rather than a voluntary savings investment. If you do this, then you’ll be less likely to miss out on any payments. Many banks will also set up automatic transfers from your normal account into your savings one if you so wish. This can also save you the hassle of having to move money about on a monthly basis.

Once you’ve set your goals it’s vitally important to keep a regular track on your savings through the use of a spreadsheet. Not only will this give you a better understanding of the money you’ve saved, it will also help in further motivating you, as you continue to watch your money grow.

About the author: Jimmy Dean is a keen finance blogger who writes about clients such as Ulster Bank who have a selection of savings accounts available. He can also be found writing on his own site Money Matey