Why savings goals matter?

savings goals, savings account, bankWhy do we set goals?  We set goals so that we can have something to work towards.  It helps us to have an end in sight.  All too often in life we work and work and we do not have an end goal in mind.  It might be retirement; it might be a new jet ski, or a new set of golf clubs.  Whatever it is having a goal gives us something to work for.  When there is a “reward” at the end the process to get there can feel worthwhile.  Obviously these that I mentioned are financial related hence being a finance related site, but you may have a goal to lose 10 or 15 pounds.

I remember a few years back having one of the best savings accounts with a local bank that was then sold to a major world wide bank.  The savings account transferred over to one of their premiere savings accounts.  Wheewwww having close to 8k in the bank I was making more than $200 in interest every year.  It was phenomenal.  While I did not have any real goals for this money seeing the interest accumulate every year was great.

I have found that one of the toughest challenges about having major savings goals is maintaining focus.  Typically the bigger the financial savings goal the longer it takes to achieve and the more likelihood to lose focus.  I use a spreadsheet to track my savings goals.  I know some banks and financial software packages have savings calculators and separate tracking accounts to help you achieve your goals.

Banks are a great resource to help you save, if you can open an account that is interest bearing you will earn money on the money that you are trying to save for your goal.  It is a win win for you, what’s better than to be paid to save?  Be sure to shop around for the best rates if you are looking to open a savings account.

Savings goals matter because in this tough economy you need to be prepared for the unexpected, and when purchasing a big ticket item many of us do not have sufficient cash flow to buy and not be affected by the steep price.  So an initial savings goal should be to set aside an emergency fund.  Do it you will be happy you did!

Whatever they may be it is important to set a goal and try to stick with it.  If you have never set goals set small ones that are easily achieved to give yourself the confidence and momentum to take on large goals.  At the end you will be happy when you can see your hard work paid off.

Photo by: 401 (k) 2012