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Setting your savings goals

Having a specific goal to save towards can help you stay focused. Your goal could be something big like a down payment for a home or an event, or simply for more peace of mind. Whatever it may be, you'll have a clearer sense of purpose by setting savings goals.

Studies show that people who set savings goals save more and reach their goals faster than those who don't. While we may want to live in the moment – which can make saving money hard – it's possible to overcome this with regular prompts or nudges.

You can start by considering some of these questions:

  • What do you want or need to buy in the next 12 months?

  • What trips or holidays do you plan to take?

  • What high-interest debts would you like to clear?

  • What are your medium-term plans (eg saving for a down payment on a home)?

  • What savings might you need for your long-term future (eg your retirement)?

  • What help would you like to be able to provide for your loved ones?

Once you've turned your answers into a savings plan, you'll need to stay focused to achieve your goals. Here are some practical ways to do that:
To do list Description
Write your goals down

Place them somewhere visible like your fridge door, on a savings app or a note on your mobile phone.

The idea is to make sure you see your goals often, so you're reminded to save for them regularly.

Break down big savings goals

Divide big goals, like a down payment for a home, into a series of smaller targets. Big goals can seem daunting, and it can be tempting to give up when you don't seem to be getting much closer to them.

But if you break them down into smaller goals, it will be easier to see the progress you're making and stay motivated.

Get friends or family involved

Tell them about your savings goals and ask them to check in on your progress regularly. Better yet, make it competitive and encourage them to set their own savings goals.

Sharing goals can make you feel more accountable and encourage you to keep going.

Think in terms of timescales

It can be helpful to divide your savings goals into the short term (eg a trip abroad or a new car), medium term (eg a down payment for a home) and long term (eg paying off your mortgage and saving towards your retirement).

By separating your goals out this way, you can enjoy the gratification of reaching your short-term goals while still having plans in place to reach your longer-term goals.

Once you've turned your answers into a savings plan, you'll need to stay focused to achieve your goals. Here are some practical ways to do that:
To do list Write your goals down Write your goals down
Description

Place them somewhere visible like your fridge door, on a savings app or a note on your mobile phone.

The idea is to make sure you see your goals often, so you're reminded to save for them regularly.

Place them somewhere visible like your fridge door, on a savings app or a note on your mobile phone.

The idea is to make sure you see your goals often, so you're reminded to save for them regularly.

To do list Break down big savings goals Break down big savings goals
Description

Divide big goals, like a down payment for a home, into a series of smaller targets. Big goals can seem daunting, and it can be tempting to give up when you don't seem to be getting much closer to them.

But if you break them down into smaller goals, it will be easier to see the progress you're making and stay motivated.

Divide big goals, like a down payment for a home, into a series of smaller targets. Big goals can seem daunting, and it can be tempting to give up when you don't seem to be getting much closer to them.

But if you break them down into smaller goals, it will be easier to see the progress you're making and stay motivated.

To do list Get friends or family involved Get friends or family involved
Description

Tell them about your savings goals and ask them to check in on your progress regularly. Better yet, make it competitive and encourage them to set their own savings goals.

Sharing goals can make you feel more accountable and encourage you to keep going.

Tell them about your savings goals and ask them to check in on your progress regularly. Better yet, make it competitive and encourage them to set their own savings goals.

Sharing goals can make you feel more accountable and encourage you to keep going.

To do list Think in terms of timescales Think in terms of timescales
Description

It can be helpful to divide your savings goals into the short term (eg a trip abroad or a new car), medium term (eg a down payment for a home) and long term (eg paying off your mortgage and saving towards your retirement).

By separating your goals out this way, you can enjoy the gratification of reaching your short-term goals while still having plans in place to reach your longer-term goals.

It can be helpful to divide your savings goals into the short term (eg a trip abroad or a new car), medium term (eg a down payment for a home) and long term (eg paying off your mortgage and saving towards your retirement).

By separating your goals out this way, you can enjoy the gratification of reaching your short-term goals while still having plans in place to reach your longer-term goals.

You can use the savings for investment. If you already have an HSBC Savings Account, you can open up an Investment Account on your mobile in 5 easy steps.

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