(NC)-How many times have you said you'll go on that dream trip to Europe that you've been talking about for years, or that you're finally going to renovate your basement so that you can have that games room you've always wanted? There always seems to be another bill to pay and saving money for these lofty goals can sometimes seem impossible. But it can be done!
Follow these tips to help make it happen:
Write down your goal: It is well known that writing down your goal, financial or otherwise, makes you more committed to achieving it. But it's not enough to write it down, and tuck it away. You need to keep revisiting your goal to keep it top of mind.
Know your goal: Don't assume that your goal is unattainable because it's perceived to be significant from a cost perspective. Do your research to find out how much it will really cost for that European vacation. This will help you assess different options for your goal. For example, travelling by train through Europe is common. Maybe you can take a sleeper train to save money on accommodations? Find out the real cost of your goal.
Plan your goal: Once you have determined the true cost of your goal, plan how you will achieve it. You can do this in one of two ways - by date or by dollar. Setting a goal by date allows you to plan how much you need to save on a regular basis to achieve your goal by a certain date. For example, if your European vacation will cost $8,000 and you want to see the Eiffel Tower in two years, you need to save a minimum of $300 per month for the next two years. Alternatively, setting a goal by dollar amount allows you to determine when you can reach a savings goal based on how much you can afford to save on a regular basis. Take the European vacation as an example again. You've looked at your finances and know that the most you can save per month is $100. If the vacation costs $8,000, you know you'll be on a plane to Europe in about six years.
Give your goal a chance to grow: You'll need a place to put your savings, right? Open a high-interest savings account, preferably with minimal to no fees and service charges. Not only will you be saving money for your goal, but your money will grow at the same time. You may be surprised how quickly your savings add up over time when you make regular contributions into an account with a high rate.
For more information and tools to help you save for your financial goals, visit getyourgoal.ca.
- News Canada