How to Set Goals for Your Long-Term Saving Plans

The imminent arrival of 2022 brings with it the chance for clean slates and fresh beginnings.

According to recent reports, the average UK household spends £2,500 across the Christmas period, with Brits spending 29% more in December than in any other month.

If, after all the festive spending, you’re looking for innovative ways to start saving again, here are some simple goals to help you achieve your long-term saving plans in the new year.

Establish a Budget You Can Stick To

One of the main tricks of success when it comes to saving is the art of budgeting. If you work backwards from your total monthly income, deducting rent, utility bills, food, travel and any other essentials, you should be left with your disposable income for the remainder of the month. Decide how much of this you want to spend and how much you want to put away into your savings account. Whether you prefer to budget weekly or monthly, sticking to your selected spending cap is key to success.

Separating Your Funds Into Money Pots

Check to see if your online banking app has any saving features from which you can benefit. These might include setting spending caps or being notified of when you’re getting close to your entering your overdraft before payday. It can also be helpful to separate your income into money pots. You can arrange these accordingly so that you have a pot for different aspects of everyday life. We recommend having a pot for your bills, a pot for essentials (such as food and travel) and a pot for treats (such as non-essential luxury items).

Set Yourself Spending Boundaries

If your ultimate goal is to save for something big, such as a house deposit, then you may need to consider all financial options available in order to reach that goal in a way that works best for you. Remember that it’d be unrealistic to plan as if you were going to completely put your social life on hold for years at a time while you save. The trick is to set yourself spending boundaries and stick to them. For example, if you vow to only eat out once a week, try to maintain that. If you pay for gym classes, doing two classes a month and mixing these up with going for runs or home workouts can be considerably more cost-effective than paying for a class four times a month instead. You can also find tonnes of free workout videos online if you search for personal trainer sessions on YouTube.

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