Goal setting

People who set a savings goal save faster than those who don't! So get MoneyFit and name your goal, whether it's saving for a deposit on your own home, a dream holiday or a new car. Then work out how much you can save each month, get started and sit back and watch your money start to grow!

Step 1 - Name your goal

You can save directly from your payroll into a credit union savings account.What do you want to save for? If you name your goal you'll reach it faster. If you're new to saving, try starting with a small goal.

Money fitness tip

Use our GoalSaver to see how quickly you can reach your goal.

Even if you're just saving for a rainy day, you're more likely to succeed if you have a goal amount in mind. See Why it's a good idea to save.

Did you know? It's official – people who set their savings goal save faster and up to £550 a year more than people who don't.

Grab a pen and write down your goal.

Step 2 – Work out how much to save each month

It depends on the price of your goal, how much spare cash you have at the end of each month, and how soon you want to reach your goal.

Say you were saving for a £400 laptop. You could save £100 a month for 4 months, or £50 a month for 8 months. It's a balance between what you can afford and how long you want to save for. 

Use our GoalSaver to see how long it’ll take you to reach your goal.

Step 3 – Set up a standing order

Money fitness tip

Name your account to inspire you to save, for example 'Our wedding', 'Summer holiday' or 'Our first home'.  You'll save much quicker!

Strike while the iron's hot! Open a straightforward instant access savings account. It may be easiest to do this with your own bank.

Set up a regular payment today to transfer the amount you want to save into your savings account each month. See Direct Debits and standing orders.

What to do 

  • Open a savings account if you don’t already have one – go online or pop into your bank.
  • Set up a regular payment into your savings account every month. 

Step 4 – Shop around to find the best place for your savings

Once you've got started give your savings a chance to grow faster by spending some time to find the right home for them. The best home depends on how much time you have to reach your goal, and how much risk you are willing to take.

  • For a short-term goal (up to 5 years) you want a saving product like a savings account, term deposit or a cash ISA
  • For a medium term goal (5-10 years) use a savings product, or consider investments depending on your goals and risk appetite.
  • For a longer-term goal you should consider investments like shares, bonds or funds that tend to provide protection from inflation over the long term.

Comparison websites are a good starting point for anyone trying to find a savings account tailored to their needs.

DID YOU KNOW?

 

You can save directly from your payroll into a credit union savings account.

We recommend the following websites for comparing savings accounts:

Remember:
  • Comparison websites won’t all give you the same results, so make sure you use more than one site before making a decision.
  • It is also important to do some research into the type of product and features you need before making a purchase or changing supplier.

Last reviewed: 23/05/2017

This content has been provided by the Money Advice Service