Having funds stacked up safely for some rainy day ahead forms part of any persons’s dream for comfortable independence. More popularly known as savings, setting up these funds can appear to be impossible for many. The secret lies in setting attainable savings goals to ensure that you are not bound to fail from the very start.
Here are the steps to follow:
Set Aside a Specific Amount Regularly
This is no secret at all. We need to set aside a specific amount regularly for us to realize a considerable amount of savings. This means earmarking an amount from every income derived and putting it on one account that will never be withdrawn from until the designated time.
Make It Difficult to Withdraw Funds Before the Designated Time
Here lies the wisdom of forced savings and time deposits or at least the principles they promote. Forced savings promote the idea of setting aside an amount from our expected income even before the money gets into our hands. Time deposit arrangements on the other hand prevent us from easily withdrawing our funds. Doing so comes with penalties which often works as a deterrent.
Set Attainable Savings Goals
Set your savings goals to an attainable level. This is the most realistic and doable approach. If you set your goal too low, you may not end up with an amount worthy to be called savings. Set it too high and you’ll end up feeling disappointed.
Create an Irresistible End Goal for Saving
Saving funds for future use should not be such a sacrifice. It can actually be made to be an enjoyable exercise towards financial freedom and independence. What better way to do this than to create such an irresistible vision of the prize that lies ahead – a luxurious vacation, comfortable retirement, or anything that can excite you enough to save without feeling like you’re suffering. Of course, we should not go overboard and blow everything on a single splurge lest we find ourselves penniless in an advanced age.
It can be especially difficult to save at this time when just about everything is being peddled as a necessity. There is a need for us to establish our priorities and set our goals accordingly. We don’t need everything that advertisers say we do. The sooner we discover what we really need, the simpler and more enjoyable life becomes. One of the wisest decisions we can ever make in our life is to set attainable savings goals and just do it.