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Thanks for all your tips on staying focussed on long-term savings!
As mentioned in yesterday’s post, when it comes to short-term savings, I’m a pro. As long as I have that goal right before me, I can save as much as possible.
Saving money over the long-term, however, is a different story. As FruGuy and I have decided to focus on saving a deposit to buy a home in around 3-4 years, it’s going to take a bit more determination to stay focused over such a long period. Here are your tips on how to do it:
Mrs Micah via Twitter, suggests breaking the long-term goal down into short term goals. I’m definitely planning on doing this. I will continue to pay into my savings as a ‘bill’ each month, rather than saving whatever is left over at the end of the month as some people do – has anyone ever successfully saved via this method??!!
Revanche from a Gai Shan Life recommends keeping the big picture in mind by visualising the final goal and remembering how important it is to you; and keeping in contact with like-minded people (that’s you) for support.
Mmmeg suggests continuing to track your progress, and keep a spreadsheet of your savings so that you can see them grow as further motivation.
My Pretty Pennies advises breaking it down into smaller attainable amounts, and keeping your eye on the ball by keeping reminders around you of your goal, like pictures or quotes, so that you don’t forget your target.
Paranoid Asteroid and PsychSarah both recommend automatic savings deposits each month so there is no option to skip a month without taking active steps to do so. They also both agree that blogging about it will help keep you in line.
Mrs Smith suggests setting yourself timelines to have certain amounts saved, effectively creating mini-goals that are satisfying in themselves when achieved.
And the lovely Holly and the ever-captivating J Money say that they just automatically keep squirreling the savings away even without having a clear goal in sight. Just seeing their savings grow and knowing they will come in handy one day is enough motivation.
9 Responses for "Your top tips on long-term savings motivation"
I definitely recommend a spreadsheet too. I created one so that I could see the combined total of my savings accounts (I have a few). I love updating it on payday and seeing the bright red figure in the bottom corner shoot up. The flip side is that if I do ever dip into my savings then it’s completely depressing to see that figure go down.
Blogging about your goals will go a long way towards reaching them. Setting aside money each month is a great way to build savings, but keep in mind that doesn’t mean you shouldn’t save more than you are setting aside. I put in 15% towards retirement each month straight from the paycheck, but whenever I have a few extra bucks laying around I toss them in the retirement pot as well.
I am actually one of those people who saves what’s left over, but it’s usually based on my budget. I make a game out of trying to save more than I thought would be left over because I’m weird like that.
I have a hard time saving consistently if I don’t make it automatic. My retirement fund and emergency fund accounts are automatically transferred monthly. I am thinking of starting to save for other goals automatically, like a 2010 trip to Barcelona.
I’ve saved using the “save whatever is left over at the end of the month” method, but that’s just me. I make a conscious effort to track my spending every day, and have a goal in mind of how much I would like to have in my checking account to transfer into savings at the end of the month. However, I also contribute small sums throughout the month to other savings pools, so I guess I go both ways.
Good tips on saving for long term. We’re also looking to buy a house and have started off small – $50 a month each, and will increase our savings as our incomes grow.
Great post!
And congratulations on getting married!!!!
I think it’s key to keep the ‘pots’ of money seperated – at least on a spreadsheet or similar. I fund several different goals each month, and watching the balances go up until it is time to ‘pull the trigger’ on a major purchase is even more fun than watching the debt balances count down to zero!
Use whatever techniques work for you to keep your focus, and best of luck on the future house!
We used to apply what was left over to our debt every month–while making a conscious effort to do so. After switching to cash and an “envelope” system, and setting an attainable monthly amount that’s to go towards debt repayment, we found that three things happened: 1) We actually spent less! 2) It reduced our stress of trying to juggle everything, and 3) We literally pay off thousands more every year by doing so!
Sincerely,
Amanda
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