How to save for your goals faster
Setting a savings goal can be a powerful tool for managing your money and making better financial decisions. It can also help you achieve your financial goals faster and more effectively. The first step is having a specific savings goal in mind. For example, rather than resolving to “saving more”, you could have a more specific goal such as “save & invest $10 every week” so you are able to track your progress and stay motivated at each milestone.
Other common savings goals include saving for a home deposit, saving for a child’s education, saving for travel, and saving for retirement. If you don’t have a specific savings goal in mind, having one set up for a rainy day can also be beneficial for unexpected expenses or a sudden loss of income. Learn more on this in our blog ‘Why you should have an emergency fund’.
Now that you have a goal in mind, how can you reach it faster? By automating it and letting it grow in the background of life. Most banks now offer this in the way of scheduled transfers to other subaccounts, and Raiz also has an ‘Automatic Savings Goal’ feature that allows you to easily invest automatically into your Raiz account on a schedule that suits you. Here are several reasons why this can help you save faster:
Automatic Savings Goal can help you save consistently
By automating your savings, you can save consistently without having to remember to transfer money into your savings account manually. This can be especially helpful if you struggle to save consistently or forget to transfer money to your savings account on a consistent basis. Believe it or not, slow and steady can win the race!
“It does not matter how slowly you go, as long as you do not stop.” – Confucius
Automatic Savings Goal can help you save more
You may be surprised at how much more you could save if you didn’t have to think twice about it. If you are using Raiz, enabling our Round-ups feature is another way to save more by investing the spare change you make from everyday purchases. The key is to save and invest small amounts regularly and automatically so it minimises the impact to your everyday life, which can eventually make a big difference to your future.
Automatic Savings Goal can reduce the temptation to spend
When you automate your savings, the money is transferred automatically to your savings account before you have a chance to spend it, which can help you resist the temptation to spend your money on non-essential items. Another quick tip to stop temptation spending is to never go into a grocery shop hungry or without a list!
“Do not save what is left after spending, but spend what is left after saving.” – Warren Buffett
Automatic Savings Goal can help you make the most out of compound interest
If you are saving for the long term, automating your savings can help you take advantage of compound interest, which is the potential interest that you earn on your savings or potential return on your investments. When you save consistently over a long period of time, your money has the opportunity to grow more quickly to reach your goal, faster and further. Like a snowball effect, the longer your investments have been building, the higher your potential returns can reach.
For more tips on how to stick to your goals for 2023, check out our blog ‘How to stick to your New Year’s Resolutions.‘
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