Whatever your financial situation, it's safe to say that the last few years have been challenging economically. From the cost of living crisis to rising interest rates, there's no hiding from the fact that life has become more expensive so it's no surprise if your financial goals have felt more out of reach.
Regardless of your goal - whether you're planning a new car purchase, paying off a credit card or retiring in the future - there's one key ingredient you need and that's a sustainable savings plan that you can stick to. We're not talking about short-term, quick fixes here; it's about long-term strategies that can stand the test of time. Here's how to build a plan that actually works.
Take the marathon approach
Tempting as it may be to throw everything at your savings goal, reaching a financial target is often a case of a marathon, not a sprint. Rather than cutting out all of your discretionary spending from your budget and cancelling your Netflix subscription or turning down all social plans, look at how you can free up room to save a little more in your budget without sacrificing the things that fill up your cup for good.
Whilst there may be short periods of time when you need to intensify your savings efforts, aim to keep these as short as possible to look after your general wellbeing. Yes, it’s important to stay focused on a goal and have a level of discipline over your spending, but protecting your mental health is important too. Connection to friends and family plays a major part in our wellbeing, so be careful not to sacrifice other aspects in pursuit of more savings.
Save on autopilot
The good news for anyone looking to put away a little extra these days is that saving money doesn't have to be a hard slog. Thanks to a whole host of technology, it's never been easier to save a little extra money without noticing and over time, those pennies can turn into pounds and boost your savings pot significantly. Plenty of banking and finance apps including Monzo, Starling, Chase and Chip now offer roundup tools, where you can stash away the difference between your purchase and the nearest pound automatically, taking the extra thinking off your plate.
Other budgeting tools such as Emma and Plum use clever algorithms to analyse your spending and work out how much money you can save each week, before moving that amount into a savings account for you. With the choice of financial technology today, there’s no reason to sleep on saving.
Milestones make momentum
One of the challenges when it comes to saving can be keeping momentum going over a long period of time. Rather than chipping away at a huge number which can be quite daunting, try breaking down your big financial target into smaller, more manageable chunks. Give yourself smaller numbers to work towards on a weekly or monthly basis so that you can celebrate your progress every time you reach a mini milestone, whilst still having an eye on the end goal.
For example, if you're working towards a £5,000 goal, set yourself five smaller targets of £1,000. Track your progress as well, whether that's using a paper progress chart or a savings app - when you can physically see yourself getting closer to a goal, it's so much easier to stay focused. Before you know it, your target will be within reaching distance.
Bag yourself an accountability buddy
Solo goal chasing can sometimes be tricky, especially if you feel as though you're having to solely self-motivate. Rather than relying on your own willpower to stick to your savings plan, why not team up with a friend or family member to keep each other accountable?
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You don't have to have the same goal as each other, but you can encourage one another when you have a dip in motivation and cheer each other on to the finish line. You can share ideas, tips and inspirational messages and crucially, celebrate together when you reach your goals.
Ellie Austin-Williams is the author of Money Talks, a Lifestyle Guide for financial wellbeing. Find her on Instagram at @thisgirltalksmoney.