Savings Goals: How To Create A Winning Financial Plan

With the FIFA World Cup kicking off this week, football fans across the country will be dreaming of goals, glory and silverware.

But whether you’re trying to win a football match or achieve a financial objective, success rarely happens by accident. Behind every successful team is a clear plan, consistent effort and a long-term goal. The same is true when working towards your savings goals.

Why Savings Goals Matter

We all have goals in life. A home, a car and a comfortable retirement are obvious examples, and almost all of them require careful planning and saving.

But having multiple savings goals can feel daunting. Rather than becoming overwhelmed by the challenge, the answer is to establish a clear savings plan which will help you reach them. 

By defining your savings targets and setting a timetable, you can focus your efforts, help ease the stress and measure your progress. Knowing that you are on track makes everything a lot easier. 

But what exactly are your savings goals, and what is the most appropriate way to hit them? You might want to give consideration to the following steps. 

Step 1: Identify your savings goals 

The first thing to do is identify what your savings goals are. They could be anything, from simply saving for Christmas to putting money aside for that big cruise to celebrate retirement.

It can help to split them into different timeframes: 

• Short-term savings goals. 

Saving for goals you want to hit within the next few months to a year. A big family holiday or a new gadget could need short-term saving. 

• Medium-term savings goals. 

Saving for a new car, wedding or home improvements might take a year or two. 

• Long-term savings goals. 

Saving for significant life events, such as buying property or retirement,  could  take several years. 

You might also need to save an emergency fund to cover any unexpected expenses, like medical bills, car repairs or if you lose your job. 

Break them down into short, medium and long-term objectives and think about what you need to achieve in specific timeframes. 

Step 2: Work out how much you can save each month 

Next step is to work out how much you can afford to put away each month. Monthly contributions will vary depending on your circumstances. A budget plan could give you a snapshot of your finances, show your income, and let you see how much you can stash into your savings. 

Step 3: Work out the most appropriate home for your savings 

The most suitable savings account depends on how soon you need to access the money, how much flexibility you want and the interest it pays. 

• Easy-Access Savings Accounts

Easy-access savings accounts are useful if you want to dip into your savings when needed. You can typically access your funds at any time, which makes them well-suited for short-term objectives 

• Notice Accounts

Notice accounts can usually pay a little more interest, but you must give notice before withdrawing your money. 

• Regular Saver Accounts

Regular saver accounts are designed for building savings gradually through monthly deposits. 

• Fixed-Rate Bonds/Fixed-Term Accounts

Fixed-rate bonds or fixed-term accounts may be more suitable for longer-term goals and could offer greater certainty over returns. 

• Cash ISAs

Cash ISAs are similar to standard savings accounts, but any interest earned is not subject to tax. 

Step 4: Do the sums 

When you’ve calculated how much money you can afford to save each month, and the type of account and interest your money will earn, you should be able to set timeframes for your savings goals. 

Work out whether you can afford to contribute a little more to help achieve them sooner. 

Consider setting up a standing order to transfer money regularly from your current account to your savings. Scheduling it around your payday can help you save consistently without needing to take action each time. 

Step 5: Get some help 

Saving is simple, and it can be simpler still with a little expert help. 

At Continuum, we can help you identify the most appropriate savings and investment solutions for your circumstances and long-term goals, helping you make the most of your money and stay on track to help achieve your objectives. 

After all, every goal starts with a plan. 

This article is intended for general guidance only and is based on the opinion of Continuum it does not constitute financial advice. Individual circumstances vary, and you should consider seeking advice from a regulated financial adviser before making any decisions about your Savings planning. 

The Financial Conduct Authority does not regulate taxation advice or deposit accounts. 

The value of an investment can go down as well as up. When investing Capital is at risk. 

Investors in ISAs do not pay any personal tax on income or gains. Levels and basis of reliefs from taxation are subject to change and their value depends upon your personal circumstances. 

Investments do not include the same security of capital which is afforded with savings/deposit accounts.