5 ways to help you achieve your financial goals
We all approach savings differently, and each of us will have a different goal, some short term, some longer-term thinking to retirement and beyond. We’ve pulled together some top tips to help you achieve your financial goals, no matter what it may be.
Create A Plan
The first thing you should do is make sure you know exactly what you’re working with. Calculate all income, including any partners that you might pool money with. Then, work out all your outgoings, separating the essential (mortgage, credit card payments, food etc.) from the luxury (yes, those rarely used gym memberships or monthly trips to the hairdressers count!). This will make it much easier for you to plan where you could save, and how much.
Set Realistic Goals
With your plan, set the ideal amount you’d like to save, this could be for a wedding, holiday or to pay off debt, but by giving yourself a target, you’ll have something to work towards.
It’s good to have ambitious goals but avoid setting the bar too high, over-committing may cause frustration and steer you off track with your savings plan and overall goals.
It’s important you set a little spare money aside each month to enjoy yourself and account for any unexpected costs that might pop up.
If you’re willing to take a little more risk, and are looking at longer-term options, consider diversifying and look at alternatives that offer higher interest rates.
Know Your Options & Research
There are so many options out there outside of the standard savings account. With companies like Plum, an AI assistant that automatically sets money aside for you, and other fintech companies, such as Kuflink, that whilst they don’t offer a savings option, do provide ways for you to grow your money through alternative investments.
When looking at alternatives to a savings account, you should always do your research, especially around the risks involved.
If you’re looking at investments or ISAs, factor in the type of access to funds you’ll need, the length of time you want to put money away for and understand risk vs reward when it comes to interest rates and potential returns.
Whether you save through your bank’s everyday savings account, invest in an Innovative Finance ISA, bonds & shares or any other means, always check the terms before committing, and speak to a qualified financial advisor if you need further advice.
There are months where sticking to your budget will be hard, maybe even impossible, but that’s not an excuse to throw it all out the window.
Remember why you’re doing this, it’s better to reach your goals a month or two later than not at all.
It’s okay if your goals or circumstances change throughout the year and your budget needs reviewing. Remember, a budget is exactly that; it isn’t a life plan, and it shouldn’t encroach on your happiness.
Start thinking outside the box, there are lots of pocket-friendly things to do with friends and family that will keep a smile on your face while allowing you to save.
Kuflink provides blogs for your general information only. Blogs do not constitute advice and should not be relied upon by you for making investment decisions. Products and services referred to will not be suitable for all investors and appropriate independent financial advice should always be sought where necessary.