How to Reach Your Savings Goal Sooner

Have you set yourself a savings goal? Perhaps there’s a figure you’re aiming to achieve in your bank account or an item you’d like to be able to afford. Whatever your target, chances are you’d rather get there sooner than later. If you’re stuck on how to fast-track your savings progress, here are a few ideas that could help you speed things up.

Eliminate Expenses

Trying to spend less money is an obvious step towards reaching a savings goal, but don’t limit yourself to cutting out the obvious expenses. Not upgrading to the newest smartphone and refraining from a shopping spree make for a great start, but look carefully for other opportunities to save money. Cancel your gym membership and take to the great outdoors for your exercise sessions. Borrow a movie and cook a meal for a romantic date at home instead of an extravagant night out. Even seemingly insignificant things, like packing your own lunches for work or making your own coffee, can add up to notable savings over time.

Review Your Existing Debts, Contracts, and Loans

If you’ve got a debt or two, the interest you’re accruing could be sabotaging your saving efforts. Depending on what’s still owed and the interest rate, it may be more efficient to channel your money into repayments before refocusing on your savings goal. Anything else you pay monthly, such as phone bills and insurance premiums, should be reviewed regularly to ensure you’re not missing out on a better deal.

If you have a mortgage, no doubt this is one of the biggest obstacles to overcome in your savings pursuit. You should be checking your loan annually to see if it still matches your needs and is competitive in the current market. If this isn’t the case, refinancing your home loan could help you reach your financial goals sooner. Speak to an expert like BOQ to see if a refinance home loan could be your ticket to a better place financially.

Plan Ahead

Planning ahead can help you save money faster in many situations. While there are surely several others, grocery shopping and travelling are two key activities that could prove less expensive with some organisation and forethought. Write and adhere to a shopping list to help you spend less at the supermarket. Instead of driving everywhere and sacrificing savings to the fuel station, prearrange carpooling to work, walk or cycle when possible, and look into public transport alternatives.

Don’t Just Save – Invest

If your savings goal is rather ambitious, letting your funds sit stagnant in a bank account may simply be insufficient for reaching your target in good time. While your savings account may accrue some nominal interest payments, an investment is more likely to see your finances grow rapidly rather than gradually. From real estate to stocks and mutual funds, there’s a wide range of options for investing and there will probably be something to suit your budget and circumstances; do some research or consult with an expert to uncover which path would suit you best.

How is your saving going? Getting closer to that goal you’ve set? If you’ve picked up any useful advice during your journey, feel free to share your insights in the comments below.