What Are You Saving For? Set a Goal You Can Reach
Saving for something important can feel overwhelming when you focus only on the final number. Whether you are planning for education, your first vehicle, a home project, a vacation, or another major expense, a clear savings goal can make that larger amount feel much more manageable.
At New Dimensions Federal Credit Union, we want to know “What Are You Saving For?” Over the next few months, we will be following Zach and Caleb as they work toward two very different goals. Zach is saving toward a $1,500 milestone for trade-school tuition and education expenses, while Caleb is building a $2,000 fund toward his first used vehicle.
Their goals are different, but the first step is the same: give your savings a destination.
Start by Naming the Goal
“I want to save more money” is a good intention, but it can be difficult to build a plan around it.
Your savings goal should answer three questions:
- What am I saving for?
- How much will I need?
- When would I like to reach my goal?
Once you have those answers, you can begin turning a big number into smaller, more manageable steps.
For Zach, that means saving toward tuition, books, tools, and other education-related expenses as he prepares for a career in the skilled trades. For Caleb, it means building a fund for a used vehicle while also thinking about the costs that come with ownership.
Put a Realistic Number on It
Setting a realistic savings goal may take a little research.
For Zach, he has to consider the cost of tuition, books, tools, fees, and other required expenses.
For Caleb, the purchase price of a used vehicle is only part of the picture. Registration, insurance, fuel, maintenance, and repairs should also be considered when deciding what is truly affordable.
The same idea applies to nearly any goal. If you are saving for a vacation, look at transportation, lodging, meals, and activities. If you are planning a home project, estimate the cost of materials and labor.
Your target does not have to be perfect down to the last dollar. It simply needs to be realistic enough to give you something meaningful to work toward.
Break the Goal into Smaller Pieces
A $1,500 or $2,000 savings goal may sound intimidating when you look at it all at once, but breaking that amount into smaller deposits can make the goal feel much more achievable.
For example, someone trying to save $1,500 over 10 months would need to save about $150 each month. If the number feels too high, you can adjust the timeline. If you receive extra income, you can choose to add more. That flexibility is an important part of setting a realistic goal. Your savings plan should work with your budget rather than against it.
For September, Zach’s campaign milestone is $300 toward his $1,500 education goal, while Caleb’s is $400 toward his $2,000 used-car fund. Both represent 20% of their campaign goals and demonstrate how smaller deposits can begin to add up.
Your Goal Can Change
A realistic savings goal is not set in stone. Expenses change. Income changes. Priorities change. If you discover that your original timeline is too aggressive, that does not mean you failed. It may simply mean your plan needs to be adjusted.
You may decide to extend the deadline, change the amount you save each month, or revise the total after learning more about the expense. The important thing is to keep making progress.
There’s Still Time to Get Started
If you have been thinking about starting a savings goal of your own, September is a great time to begin.
You still have time to take advantage of New Dimensions Federal Credit Union’s Savings Match Promotion with Kasasa Cash Checking or the Take Charge Checking accounts before it ends in September. Start your savings goal today.
Every savings goal starts with a first deposit. From there, the next step is giving that money a purpose and building a plan around it.
If you need help deciding what is realistic for your budget, you don’t have to figure it out alone. Carrielyn, New Dimensions Federal Credit Union’s Certified Financial Coach, can help you look at your finances, talk through your goals, and create a plan that works for you. Email her at creynolds@newdimensiondfcu.com
What are you saving for?
Name the goal. Put a realistic number on it. Break it into smaller steps. Then start working toward it, one deposit at a time.
Follow Zach and Caleb on Facebook through the rest of the year and watch their savings thermometers climb as they make deposits, check their progress, and work toward their December milestones.