How To Set A Savings Goal
Setting a savings goal is a great way to watch your savings grow. Find out where to start and what a suitable savings goal is for you.
Name your goal
First, you need to decide what you want to save for. If you name your goal, you’ll reach it faster. If you’re new to saving, try starting with a small goal. Even if you’re just saving for a rainy day, you’re more likely to succeed if you have a goal amount in mind.
Work out how much to save each month
How much you save depends on:
- how high your goal is
- how much spare cash you have at the end of each month, and
- and how soon you want to reach your goal.
Say you were saving for a £400 emergency fund. You could save £100 a month for four months, or £50 a month for eight months. It’s a balance between what you can afford and how long you want to save for.
Set up a standing order
If you choose to put your savings into an instant access savings account, there should be no restrictions on how you access your money. Set up a regular payment today to transfer the amount you want to save into your savings account each month.
What to do
- Open a savings account if you don’t already have one – go online or pop into your bank.
- Set up a regular payment into your savings account every month.
Shop around to find the best place for your savings
When you’ve got started, give your savings a chance to grow faster by spending some time to find the right home for them.
The best home depends on how much time you have to reach your goal, and how much risk you’re willing to take:
- For a short-term goal (up to five years), you want a saving product such as a savings account, term deposit or a cash ISA.
- For a medium-term goal (five to ten years), use a savings product or consider investments, depending on your goals and risk appetite.
- For a longer-term goal, consider investments such as shares, bonds or funds that tend to provide protection from inflation over the long term.
Where to find a savings account
Comparison websites are a good starting point for anyone trying to find a savings account tailored to your needs. These websites are good place to start when you’re looking for a savings account:
But be aware that comparison websites won’t all give you the same results. So make sure you use more than one site before deciding.
It’s also important to do some research into the type of product and features you need before making a purchase or changing provider.
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