Are you saving for a down payment on a home? An education fund for the kids? Your retirement? Whatever the reason for your savings, follow these strategies below to help you set achievable financial goals in a realistic timeframe for your future.
First off, what are you saving for?
Determine what your short-term, mid-term and long-term goals are. For example: your emergency fund could be a short-term goal, a down payment for a home could be either a midterm or long-term goal, and retirement could be a long-term goal for you.
Next, set a timeline for your goal.
Determine how much you want to save and when you need it by. For example: by 2026, I want to save $35,000 for a down payment on a home.
Now you can build your savings plan!
For each of your savings goals, calculate a monthly savings amount that you will need to put away to reach your goal. For example: you will need to save $583 per month to get you $35,000 in 5 years.
Creating your budget.
Now that you know how much money you need to save each month, add that amount to your monthly budget. If it's more than you can afford, consider making a few financial cuts, finding ways to add in extra income, or choosing a higher-yield savings vehicle.
Not sure where to start?
TIP: I always suggest stocking your emergency fund with at least 3 months of expenses and then ramping up on other savings goals.
Now you know how to create, organize, and set up your future savings goals in an achievable timeframe that works for you. I am confident that if you follow these financial strategies, any financial goal you have will surely be met!
If you’re a first time home buyer trying to save up for that initial deposit, please contact me for assistance: Email: email@example.com or Phone 1-905-229-9500.