Saving money can often seem easier said than done, especially if you’re working towards a big savings goal such as the deposit of a house or the purchase of a new car. Big numbers can be very daunting and it can be hard to comprehend how you’ll reach your savings goal if you can only afford to put a little money aside every month. If all this sounds a little to close to home and you have a big savings goal to hit then don’t panic – here are a few tips to help you reach it.
Create a plan
“A goal without a plan is just a dream”. The first thing you need to do if you need to save up a large sum of money is to create a plan. Work out exactly how much you need to save in total and then make it more manageable by breaking it down into more manageable chunks that you can work towards on a daily, weekly and monthly basis. $10,000 looks like a huge amount of money to save in a year, but if you break it down it works out to $27.40 a day. If this seems like too much to save then try breaking it into a daily amount over two years or even three, which works out at a more manageable $9.13 a day.
Give yourself a deadline
In order to create an effective plan, you need to give yourself a realistic deadline. As we’ve seen above an extra year can make a big savings goal seem a whole lot more achievable, even for those on a stricter budget.
Assess your spending
Now you know what you need to put aside each day it’s time to look at your current spending habits to see where you can make some adjustments. Do you really need that subscription to Netflix? Could you do without your daily Starbucks? What would happen if you quit smoking? The more you can cut back and the less you can live with the easier your savings will feel.
Of course, life happens, and you may run into some unexpected expenses along the way that ends up eating into your savings. If this happens, don’t despair, simply sit down and reassess where you’re at and what you would now need to spend to meet your set deadline. If your deadline now looks impossible to reach then consider moving it back a little to give yourself a helping hand.
Give yourself a helping hand
Finally, some savings goals are best achieved with a little help. For example if you’re looking at buying a vacation property then taking out a loan with a company such as Visio Financial will enable you to purchase the home of your dreams much sooner so that you can start making a profit again. Of course, saving up for the property yourself is always the best bet and could save you money in interest, but realistically this isn’t going to be possible for all people and in these instances, a loan can offer you a vital helping hand.
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