Budgeting · Goals

Setting Goals

I think we have all said this:

“I want money for a home deposit”

Is it ever successful? It certainly wasn’t for me. I didn’t know how I saw going to achieve it. I didn’t when this goal would be accomplished. I didn’t know where the savings would go.

This kind of goal sounds more like a wish that you would make at a bar, waiting for the taxi to arrive at 2am.

“I want $10,000 for a home deposit”

Great! You have picked a number to work towards. Now break it up into smaller chunks to make it seem less daunting.

“I want to save $200 per week”.

It is not specific. Put the little chunk and big chunk together to draw the full picture.

“I want to save $200 per week so I can generate a home deposit of $10,000”

When will this goal end? When will you reassess this goal?

“I want to save $200 per week so I can generate a home deposit of $10,000 by 31/12/16”

Where are the savings going? How will you see the savings accumulate?

“I want to deposit $200 per week into my bank account titled “Home Saving” so I can generate a home deposit of $10,000 by 31/12/16”

Exactly when will you deposit the money? (If you have a specific time, you are more likely to remember to do it each week – you will have formed a habit)Screenshot_20160416-131908

“On every Thursday at 6pm I want to deposit $200 per week into my bank account titled “Home Saving” so I can generate a home deposit of $10,000 by 31/12/16”

It is very easy to assess if you have completed your weekly task – if the bank balance does not grow at 6pm on Thursday, by the time you get up for work on Friday you will know you have failed that weeks’ quota).

Now – set a reminder on your phone for the time you will deposit your money.

To watch my savings grow, I have set up the ‘Track My Goals” app (run by ASIC’s Money Smart) on my phone. I can input my deposits and it will tell me exactly how long I have to go before my goal is met. It also gives me my deposits in graph form as well as money saving tips.

Almost finished, the last step is the best! Add a reward system to your goal:

“On every Thursday at 6pm I want to deposit $200 per week into my bank account titled “Home Saving” so I can generate a home deposit of $10,000 by 31/12/16. Every week that I do, I’ll take a long, hot bubble bath!”

That way, you will always associate saving money with instant gratification!

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