Saving money seems to be one of the hardest challenges life has to offer. At least, you could get this impression when you talk to people who have failed at it time and time again. But the truth is, there’s one simple thing that you need to get right, and suddenly saving becomes easy. It all comes down to setting the RIGHT goals for saving money.
Why Setting A Money Goal Is Not Enough
When you go around for advice on goal setting for your personal savings, you find all kinds of things online. What you don’t find, however, is the actual cure to the universal problem of lacking discipline.
As you might know if you’ve been around for a while, I always try to tackle things from a different angle. I don’t want to present you the next blog post about setting a specific amount and then just go with it. Obviously, that advice is flawed because so many people can’t stick to their goals.
That means we need to look at something else in order to make it work. And trust me when I say that once you have the right things in place, sticking to your saving money goals is a walk in the park.
How saving money goals look like for most people
Usually, you find the advice that you need to set a specific number as a goal. That will be the amount you want to save. Then you are supposed to determine when you will hit that target. Lastly, you would have to calculate the rates that get you to the desired amount.
While that advice is not wrong, it’s not too helpful either. As I’ve already said, the vast majority will NOT stick to a goal set this way. I assume you might even have made this experience yourself. I certainly have. And it’s because, if you use this approach, you are missing a very important detail.
You’re actually missing the FIRST STEP in the process of setting goals for saving money.
You Need A Reason For Saving Money!
Ok, but what actually IS the first step? Let me tell you that, until I’ve started to add this into my financial planning, I couldn’t stick to any savings plan for longer than a week. It simply was not possible. Since I’ve made this very simple adjustment you’re about to discover, I’ve never stopped saving. Not even for a short while. Because it’s EASY once you understand it.
That magical ingredient is as simple as it is profound:
YOU NEED TO KNOW WHY YOU WANT TO SAVE MONEY AT ALL
You need a reason for saving money.
Only if you know what it is that you’re saving for, you will stick to your goals! Then, once you know your why, it’s time to juggle the numbers. Not beforehand!
What would be smart goals for saving money?
As I said, I want to help you get results, not drown your head in the same information you find all over the internet anyway. So, let’s tackle your saving money goals the smart way.
In order to do that, you need to find out what your reasons for saving money are. In case you need assistance to get you started, here are some ideas:
- Going on a family vacation in Argentina
- Saving for the down payment of your first rental property
- Growing your Freedom Fund to start your own business
- Buying tickets for Tomorrowland
Whatever your reasons might be, make sure to be clear about them. Just saving money for the sake of saving money doesn’t get you anywhere! In fact, it’s the main reason why you fail at saving.
Your WHY can be as big or as small as you want it to be
It doesn’t matter what it is you’re saving for. You could also work on different goals at once. The important thing is that you’re really working on YOUR goals. Not your parents’ goals, not society’s goals. Your goals! That’s the only way you will summon the discipline to stick to them.
My own goal is to create a financially free life for myself. I want to get more and more independent from financial pressure with every day. So, I’m saving to raise the money I need to work on projects that will lead to that situation. In my case, that’s passive income streams and business ventures. But, just in case you can’t identify with my motivation, here are many more reasons why you should build your own business as soon as possible.
The website you’re just visiting right now only exists because I had the money to cover the initial costs. Even if it didn’t cost much money to start this website, it was definitely helpful having some money purposefully waiting to be put to use.
Why Financial Freedom Is A Worthwhile Saving Money Goal
I feel that financially, nothing is as important as being independent from a job. Maybe it’s because I’ve been self-employed for my whole life, but the idea of being dependent on a job scares the hell out of me.
I don’t want to be at the mercy of my boss or the success of my company. I don’t want bad economy to be responsible for sudden unemployment and for the nightmares that come with it.
However, building online and offline businesses (which need some sort of start-up investment) gives me the ease of mind I need. I create my own income, no matter what anyone else is doing. And I would highly encourage you to consider doing the same. It can totally be done while working a normal job. But it gives you a whole new sense of purpose, confidence, and, above all, security.
If you want to learn a bit more about the topic of financial freedom, sign up for my free email bootcamp. It gives you a great overview over the whole topic so you understand what opportunities are actually out there.
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NOW You Can Calculate Your Saving Money Goals
Alright, no that you’ve established the TRUE goals behind the numbers (you have, right?), you can apply the common strategies of setting a goal. In short, the specific steps of the process are:
- Clarify your goal (what we just did).
- Determine how much money you need.
- Determine when you want or need to reach the goal.
- Calculate your monthly (or weekly or daily) savings rates.
- Follow your plan and remind you of your big goal when it gets tough.
- Optional: Take a look at these money saving challenges to accelerate your journey.
I say it again, because it’s so important:
IF YOU MISS STEP 1, EVERYTHING ELSE WILL BE USELESS.
You will abandon your savings habit, and you won’t be able to stick to any saving money goals at all. In fact, you won’t event know what to do with the money you’re saving because you haven’t decided on a purpose for it. As a result, you’re probably gonna spend it impulsively as soon as something triggers your consumer sense.
Don’t waste your time or your money. Do it right from the beginning.
Saving Money Goals - Final Words
I was searching online for advice that would actually help me save money back in the day. All I could find was the same old stuff…
Set a goal, set a date, start saving, blablabla…
It did not work, no matter how often I tried. So, I thought there must be another approach. This is when I discovered the power of clarifying my reasons to save money before doing anything else.
Since then, I’ve never stopped saving money. With every month, I’m growing my own FREEDOM FUND which leads me closer to financial independence every day.
Let your real goals lead you to the same consistent success with your saving habits. I think that life gets so much easier and more relaxed when money isn’t an issue. That’s what I want for you too!
Please, let me know in the comment section what your thoughts and questions on setting goals for saving money are. I’ll be happy to help you out as much as I can!
Let’s go out and reclaim a little bit of power over our own life!
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