Goal Setting And Savings
posted on May 1, 2017 | 40 likes
Everyone has a goal, a dream, something they want to achieve in the nearest future. Saving can be the bridge between your goal and its actualization. Most people want to save but find it very difficult, saving is easier when you have a goal in mind. It keeps you motivated and helps you to stay on track.
So what's your goal, what is your dream? To buy a property, car or build up a deposit to start a new business portfolio? To save for a vacation abroad, a wedding or for your child's education? Or maybe you would just like to save up for a 'rainy day', some sort of emergency fund.
Whatever your goal is, it's important to keep it firmly in your mind and believe that all your dreams can come true if you have the courage to pursue them.
We at Page are committed to helping you do this. You can open a Page Target Savings for each of your goals (up to 5 separate accounts)! You can also name each account so you know what the money is being saved for. For example, if you are saving for a car and also need to start a project, you can open two Page Target sub-accounts. Nickname one 'Dream Car: Range Rover sport' and the other 'Lekki Phase 1 Project' and start saving today!
Financial implication of your Goal.
There is an estimated figure to every dream, determine exactly how much is needed to actualize your dreams. If you are building a house, how much do you need for the foundation and to complete the house? If it's your children’s school fees, how much is it per term/per annum? When you have the figure then you can move on to set a time frame for it. Once you know what you need to save, then you'll need to determine how long you need to save for
Don’t Let Your Dreams Remain Dreams: Set a timeframe
When do you want to achieve your goal? How long will it take to save enough? Some goals are time bound -e.g. if you have booked to go on a holiday in three months’ time, while others can be more flexible such as buying a property. Irrespective of this fact, every goal needs to have a timeframe.
Guidelines to setting a timeframe
When setting a timeframe, you should make it:
- Realistic: Reality differs for different people. Based on your current financial capacity, be realistic, don’t desire to buy a jet in 3months with a monthly savings contribution of N500,000
- Achievable: You also need to look at the frequency of saving. Are you able to put away money on a weekly, fortnightly or monthly basis (this should be determined by the frequency of how often you get paid)
Once you've set a timeframe that is realistic and achievable, you need to work out how much you need to save.
How much do you need to save?
You need to determine much you need to save. To do this you need to look at:
- how much money you already have saved
- how much you can save on a regular basis
- the interest rate you can earn on your savings
- how long you have to save
You can use our savings calculator to work out how much you need to save in the time you have available.
Once you know how much you need to save, compare that to how much you can save. Is it the same? Is there a difference?
If you need to save more, then your next step is to look at your budget and do some planning. It's important to be realistic so that your savings plan is achievable.