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How to stay on track to your savings goals

Struggling to stay on course for your savings goals? Don’t worry, you’re not the only one. Saving money isn’t always the easiest thing to do, especially with the temptation of spending and all the unexpected happenings in life.

However, with the right mindset and these handy tips, little should stand in the way of you achieving your financial ambitions.

Set clear and achievable goals

The first step in any successful savings plan is to set clear and achievable financial goals. Begin by identifying what you are saving for and be realistic. Whether it’s a house deposit, a new car, an emergency fund or retirement, knowing where you’re aiming gives you something tangible to work towards. 

Once you have an end goal in mind, break it down into manageable milestones. For example, if you aim to save £20,000 for a house deposit over five years, set a goal to save £4,000 each year. You can then work out monthly amounts and plan to reach these more reliably.

Create and stick to a budget

Budgeting is the cornerstone of personal finance. It’s essential to ensure you have the funds to allocate towards your savings goals. 

Start by listing your income and then detail your monthly expenditures, including both fixed and variable costs. There are various budgeting tools or apps to help make this easier to manage, but DIY versions can be more engaging. 

Prioritise your spending to make sure that essentials are covered first and then allocate a portion of your leftover income to savings. Adhering to a budget helps you live within your means and avoid unnecessary debt.

Automate your savings

Automating your savings is a powerful way to make sure you consistently meet your goals without having to think about it each month. 

Set up a standing order to transfer a fixed amount from your current account to a savings account on the day you receive your salary. “Paying yourself first”, as it’s called, removes the temptation to spend what you should be saving. 

Consider increasing your savings rate incrementally each year or whenever you receive a raise. This should accelerate your progress without impacting your lifestyle significantly.

Regularly review and adjust your savings plan

Goals and circumstances can and often do change over time. This is why it's important to regularly review and adjust your savings plan. 

Reassess your financial goals and budgets at least once a year to reflect any changes in your income, costs or priorities. If you’re consistently missing your savings targets, analyse your budget for possible adjustments. 

The best way to save more is usually to find the simplest yet biggest savings possible with your outgoings – costs like rent, transport and lifestyle habits are great places to start.


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