Facebook Messages: Savings Goal-Setting
- America Saves Website: http://bit.ly/ASaves
Messages
- It is important to have a reason to save; i.e., one or more specific financial goals (e.g., home improvements that cost $5,000 in three years). Having something in mind for the eventual use of your money will increase your motivation to save and help you "do the math" to calculate how much you need to asset aside each month. Goals help turn your dreams into reality. For additional ideas and inspiration, check out the America Saves web site at http://bit.ly/ASaves.
- To calculate how much you need to save to achieve a financial goal, divide the amount you need to save by the time (e.g., number of months) you have left to save. If, for example, you want to save $5,000 by next year, you'll need to put aside $416.67 ($5,000 divided by 12) a month, or $96.15 ($5,000 divided by 52) a week. Become an American Saver by taking the pledge to save for your personal financial goals: http://bit.ly/ASaves.
- Like a traveler without a map, if you don't have financial goals or a plan to achieve them, you won't get very far. Financial planning is very much like planning a trip. You need to know where you want to go, when you want to arrive, how you plan to get there, and how much it will cost. Once you have determined your financial "destination," savings will get you there. For more information about savings and the America Saves program, visit http://bit.ly/ASaves.
- Do you have goals or dreams? A dream is vague like "I want to send my child to a good college," or "I want to be comfortable in retirement." A goal is specific and has dates for beginning and ending. For example, "By the time my child is 18, I will have $20,000 in college savings." How do you set a goal? Write it down answering the questions who, what, when, where, and why. For more savings ideas, check out America Saves: http://bit.ly/ASaves.
- Want to save money? Set some financial goals. Goals provide motivation and a purpose for saving. The more specific a financial goal, the easier it is to determine how much savings is required. You simply work backwards to break a large goal into smaller pieces, For example, that $15,000 car in 5 years will require $3,000 in annual savings or about $58 per weekly paycheck ($3,000 divided by 52). Join America Saves and become an American Saver at http://bit.ly/ASaves.
- America Saves says "Set a Goal. Make a Plan. Save Automatically." Start by writing down what you want to accomplish financially and when. For example, if your goal is to save $1,000 during the next year to buy a big screen television, write "I will save $1,000 in 12 months." This goal is measurable, with a target date and a dollar cost (about $83 a month of savings), to easily measure your progress. For more information: http://bit.ly/ASaves.
- Save for something specific. It's a whole lot easier to save for a specific goal, such as a vacation or a new car, than to save just for savings sake. To calculate the savings required to achieve your short-, medium-, and long-term financial goals, use this Financial Goal-Setting Worksheet: http://njaes.rutgers.edu/money/pdfs/goalsettingworksheet.pdf. Online financial calculators are another helpful resource. For more savings information: http://bit.ly/ASaves.
- Make a "Bucket List." Actors Jack Nicholson and Morgan Freeman described it as a list of things that you want to do "before you kick the bucket." Next, convert your bucket list of dreams into SMART financial goals with a date and price. Example: Save $5,000 for a special vacation trip in two years. Then "do the math" to determine what you need to save to achieve your goals. For more information: http://bit.ly/ASaves.
- Set financial goals. Financial goal-setting is the key to building wealth. Studies have shown that, at every income level, people who set goals and are "planners" are more successful financially, save more money, and feel better about their financial situation, than those who do not plan ahead. Financial goals provide motivation to save and promote "future-mindedness." For more information: http://bit.ly/ASaves.
- Plan your financial itinerary. Financial goals are like the itinerary for a plane trip. They indicate where you want to be in the future, how much the "trip" costs (i.e., savings target), and an estimated time of arrival (goal deadline). A dream is vague like "I want to send my child to a good college," or "I want a comfortable retirement." A goal is specific with a date and cost. For example, "In four years, we will save $12,000 for a car." More information: http://bit.ly/ASaves.