Setting savings goals, as opposed to just saving for a rainy day…
I’ve always said saving for a rainy day doesn’t sound very fun. Usually when the weather’s bad, I just want to curl up on the coach and watch Sons of Anarchy or some other equally mind-numbing TV series. In fact, I usually don’t spend a cent on rainy days so the whole thing just doesn’t make sense to me.
Good stuff = Good Motivation
That being said, of course it’s important to have a small emergency fund.
But saving for the good stuff? That’s what motivates me.
In fact, the next rainy day is probably a great opportunity for you to sit down with yourself for an hour or so and write down what you really want in life.
Breaking it down to the next twelve months is a good starting point, but if you’re someone who likes to think long term, there’s nothing wrong with throwing the big stuff down too.
Write it down
I go through this process at least once a year, and have been doing it for almost 10 years, in fact I attribute this to being one of the main reasons I’ve been able to do all of the great things I’ve had the privilege of doing, like travel, start a business, write a book. Without goals, I’d lose focus.
Stick to it
Reality is most goals require funds, because money makes the world go round. So once you’ve made your list, write down how much each one will cost, and this becomes your list of savings goals. Because you really want those things, it’ll be a lot easy to save for them and stick to it.
Set up a savings account for each, and off you go!