Every New Year, people across the UK set goals with the aim of improving different areas of their lives. Among the most popular goals to set each New Year are savings goals. As a result, many people will spend their January planning how to save more of their money in 2022.
To help you as you plan, Helen Forward, money expert at Chip, shares her secrets to reaching your savings goals in 2022. She also reveals the most popular savings goals this year – in case you are in need of inspiration!
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What are the most popular savings goals for 2022?
For the last two years, money goals have been largely driven by the effects of the pandemic. Research by Chip reveals that this attitude is yet to change, and the most popular savings goal is still to develop a financial safety net. This goal has filled the top spot since the start of the pandemic.
Furthermore, the second most popular money goal for 2022 is to save for a holiday. It seems that Brits are optimistic for the summer ahead and want to make the most of (hopefully) being able to travel again. In fact, many savings goals are aimed at making the most of a return to normality in 2022. Weddings, birthdays and driving lessons are all popular saving incentives for Brits this year.
How can you reach those New Year’s savings goals?
If you want to improve your savings, January is the perfect time to start setting strong savings goals. Your plan doesn’t have to be highly detailed. You could simply make a rough outline of methods that you could try using to achieve your goals.
Here are Helen Forward’s five secrets to help you meet your New Year’s savings goals and improve your finances in 2022!
1. Save little and often
The most popular saving strategy is to deposit a lump sum of money into your account each month. However, Helen says that this isn’t always the best method to adopt. Instead, she suggests saving smaller amounts of money more often. For example, you could try depositing money on a weekly basis instead of at the end of each month.
Helen explains that using the ‘little and often’ strategy makes it easier to work with the money that is in your current account. Savings apps, like Chip, offer a great way to automatically save small amounts of cash as regularly as you wish.
2. Have an end goal
All too often, savers lose interest in their financial goals and opt for the instant gratification that comes with spending instead of saving. As a result, you should have an end goal in mind that will prevent you from dipping into your savings pot.
Your goal should be something that excites you and will make a positive change in your life. This way, your end goal will easily overpower any short-term spending urges. Popular goals include saving to buy a house, creating a new baby fund or saving up for travel.
3. Make sure your savings goal is SMART
SMART goals are goals that are specific, measurable, attainable, realistic and time-bound. Helen explains that making your goals SMART is the best way to fuel motivation and make the goals feel achievable.
The best way to know if your goal is SMART is to ask yourself the following questions:
- What goal am I aiming towards?
- How will I know if I have reached my goal?
- Is my goal within reach?
- Can I realistically achieve what I set out to do?
- What is the time frame for my goal?
4. Set short-term goals (as well as long-term ones!)
It is important not only to have an end goal in mind but also to set yourself shooter-term goals. This is because it can become easy to lose motivation if you feel like you never achieve anything. Short-term goals offer a sense of achievement that will keep you optimistic along the way.
5. Be realistic
The biggest reason people bail on their resolutions is that they set themselves up for disappointment by setting their expectations too high. As a result, these goals are destined to fail from the very beginning.
Instead, you should ensure that your savings goals are realistic. Can you actually afford to save your chosen amount each month on your salary? Of course, your goals should be exciting. However, keeping your expectations realistic is an important part of staying on track and reaching your targets.
A great way to understand what it will take to reach your goal is to use a savings calculator.