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Setting savings goals

Whether it’s for something big, like a house deposit, an event, or simply for your peace of mind, having a specific goal to save toward can help you stay focused. By setting savings goals, you have a clear sense of purpose.

Studies into savings behavior indicate that people who set savings goals save more, and reach their goals faster, than those who don't. And although we may instinctively want to live in the moment, making saving money hard, it may be possible to overcome this with regular prompts or nudges.

So why not set some savings goals for yourself? You could start by thinking about the answers to some of these questions:

  • What do you want or need to buy in the next 12 months?

  • What breaks or holidays do you plan to take?

  • What high interest debts would you like to pay off?

  • What are your medium term plans (e.g. saving for a home deposit)?

  • What savings might you need for your long term future (e.g. your retirement)?

  • What help would you like to be able to provide for your loved ones?

Once you've turned your answers into a savings plan, you’ll need to keep focused on it. Here are some ways to do that:

What you should do: How you can do it:
Write your goals down

Place them somewhere visible like the fridge door, record them in a savings app, or make a note in your phone.

 

The idea is to make sure you see them often so you're reminded of them regularly.

Break big savings goals down

Break down big savings goals, like saving for a house deposit, into a series of smaller targets. Big goals can seem daunting, and when you don’t seem to be getting much closer to them, it can be tempting to give up.

 

Breaking them down into smaller goals will make it easier to see the progress you're making and keep you motivated.

Get friends or family involved

Share your savings goal with them and ask them to check up on your progress on a regular basis. Better still, make it competitive and encourage them to set their own savings goals.

 

Sharing goals can make you feel more accountable for them, and encourage you to keep going.

Think about timing

It can be helpful to think about your savings goals in terms of short term (like a holiday or a new car), medium term (e.g. a house deposit) and long term goals (e.g. pay off your mortgage or save toward a retirement fund).

 

By separating out your goals in this way, you can enjoy the gratification of reaching short term goals, while still having plans in place to reach your longer term goals.

Once you've turned your answers into a savings plan, you’ll need to keep focused on it. Here are some ways to do that:

What you should do: Write your goals down Write your goals down
How you can do it:

Place them somewhere visible like the fridge door, record them in a savings app, or make a note in your phone.

 

The idea is to make sure you see them often so you're reminded of them regularly.

Place them somewhere visible like the fridge door, record them in a savings app, or make a note in your phone.

 

The idea is to make sure you see them often so you're reminded of them regularly.

What you should do: Break big savings goals down Break big savings goals down
How you can do it:

Break down big savings goals, like saving for a house deposit, into a series of smaller targets. Big goals can seem daunting, and when you don’t seem to be getting much closer to them, it can be tempting to give up.

 

Breaking them down into smaller goals will make it easier to see the progress you're making and keep you motivated.

Break down big savings goals, like saving for a house deposit, into a series of smaller targets. Big goals can seem daunting, and when you don’t seem to be getting much closer to them, it can be tempting to give up.

 

Breaking them down into smaller goals will make it easier to see the progress you're making and keep you motivated.

What you should do: Get friends or family involved Get friends or family involved
How you can do it:

Share your savings goal with them and ask them to check up on your progress on a regular basis. Better still, make it competitive and encourage them to set their own savings goals.

 

Sharing goals can make you feel more accountable for them, and encourage you to keep going.

Share your savings goal with them and ask them to check up on your progress on a regular basis. Better still, make it competitive and encourage them to set their own savings goals.

 

Sharing goals can make you feel more accountable for them, and encourage you to keep going.

What you should do: Think about timing Think about timing
How you can do it:

It can be helpful to think about your savings goals in terms of short term (like a holiday or a new car), medium term (e.g. a house deposit) and long term goals (e.g. pay off your mortgage or save toward a retirement fund).

 

By separating out your goals in this way, you can enjoy the gratification of reaching short term goals, while still having plans in place to reach your longer term goals.

It can be helpful to think about your savings goals in terms of short term (like a holiday or a new car), medium term (e.g. a house deposit) and long term goals (e.g. pay off your mortgage or save toward a retirement fund).

 

By separating out your goals in this way, you can enjoy the gratification of reaching short term goals, while still having plans in place to reach your longer term goals.

HSBC has partnered with Everfi to create a series of modules on a variety of topics, including Savings, Banking, Credit Cards & Interest Rates, Credit Scores, Financing Higher Education, Renting vs. Owning, Taxes and Insurance, Consumer Protection, and Investing, giving you the tools to better manage your financial future. We hope these interactive digital modules can support your choices.

 

Additionally, HSBC has created the YourMoneyCounts financial wellness program which is presented by HSBC staff to the community in a classroom setting. Participant workbooks covering Budgeting, Credit, and Identity Theft and a budgeting worksheet are found through the YourMoneyCount link above. This program was created in partnership with the national nonprofit Greenpath Financial Wellness,  and they provide free individualized support focused on your personal situation and financial wellness.