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Short Term Savings: How to Set and Hit A Savings Goal



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today we're going to talk savings goals

specifically how can you set them and

actually hit them even if the things you

want are a little bit expensive we're

talking house down payments vacation

savings all those really good things

that you want but need a couple thousand

dollars to afford or more than a couple

thousand so let's get started

[Music]

when you're studying your savings goals

the very first thing is actually the

most fun part of the whole process

figure out what's important to you if

you have a list of things that you want

to do write them all down and look at

them all together so you want to go on

vacation but you also want to buy a

house and you also want to get a dog and

you would also like to save money for

retirement someday write them all down

in one place and look at them all

together as the list of things that are

important to you that you want to spend

money on and no you absolutely don't

need to give up lattes and that will

never be said in this video because I'm

drinking one right now now that you've

got your list it's time to sort them in

terms of the order of priority let's say

your number one priority is actually

that big dream vacation you want to take

next year so that gets the number one

spot and then let's say it's buying a

house in five years and then it's

retirement they're all important they

all made the priority list but there's

just you know an order that you're going

to tackle them in and that's totally

fair sidebar I would love to hear what

you're saving for so as you're going

through this video and making your list

of what you're saving for and what your

priorities are I would love you if you

shared one in the comments so like I'm

saving for a dream vacation or I'm

saving to buy a house or I'm saving so I

can get a dog someday I love talking

savings goals but honestly the money

part is just the money part the fun part

is what you're gonna use the money to

buy or have or do in your life so that's

really what I want to hear in the

comments if you can take 10 to 15

seconds and shoot me a note of what your

savings for once you've got them all

ranked by order of priority it's time to

start estimating costs and this is both

the interesting part where you know the

rubber hits the road and you start to

look at the actual dollar value of those

savings goals but it can also be a

really fun part because you get to do

all the research and you get to look at

homes in your area if buying a house is

on your list and see how much it's gonna

cost or you get to plan out your

vacation and see how much all the things

and amazing adventures gonna take are

gonna cost you so in this step for every

goal that's on your priority list do the

research and assign a dollar value to

how much you're going to need so it

could be different if it's a down

payment or vacation but tackle each

and come up with a number for your total

savings that you need for this goal now

it's time for timelines so you have that

total of a dollar value that you need to

save to hit this goal and now it's time

to think okay well how long do I

actually have to save that much money

and it might be three months it could be

three years it could be three decades

but for talking retirement but

understanding how much each one is gonna

cost and how long you have to save up

that much money is really the core math

of setting a savings goal it's not hard

math but it is important and it'll

actually give you a lot to think about

as you go back and look at that priority

list

the final step is to look at how much

it's gonna cost how long you have to

save for it which you've just figured

out and then divide the total cost by

the number of months that you have to

save the money so maybe you have three

months to save $300 easy example but all

you'd have to do is put away a hundred

dollars a month to save for that goal

super straightforward right it gets

tricky when you let's say want to say

for a house and you want to put a down

payment next year and you need $20,000

all of a sudden you're like oh cool I

need to save like over a thousand

dollars every month to hit that goal on

my desired timeline this is yeah this is

where it gets tricky what you're gonna

do in this situation

if any of the numbers seem like whoa I

am never gonna be able to save that much

money in that much time it's time to go

back to your priority list and there are

a lot of things you can do to reject

these numbers sometimes if a goal isn't

gonna make sense in a year it could make

sense in two years there is also the

possibility that you rebalance your

priorities

so if one of these goals is really

time-sensitive you don't have any

flexibility in the timeline and you

absolutely need to save that money can

you be flexible on some of your other

goals so if you have savings earmarked

for a vacation but let's say you're

pregnant and you need to save the money

to have a baby in nine months

no more you could reallocate your

vacation savings just saving for your

baby there

are ways that you can reach it

if you're looking at this list of

monthly savings numbers and you're like

wow that's my whole paycheck I don't

know how I'm gonna do this so now you're

pretty much set you know how much your

goal is gonna cost you you know when you

need to have that money buy and that

really easily breaks down into a monthly

savings amount you might run into some

issues where you do need to prioritize

that there's only so much money every

month to allocate to these different

goals but you're in a really good place

to get started and the best first step

that you can take is once you have all

these numbers you've done all this work

like it's right there in front of you've

done it the best thing you can do to

keep yourself on track over the long

term whether that's three months or

three years is to set up an automatic

savings contribution in your bank

account to a separate savings account

for each goal that might seem like total

overkill to you and honestly it does a

little bit to me too once you get into

the realm of like five to seven savings

goals but it is really helpful you can

name each account so you know exactly

why the money is there which will help

you when you go to withdraw it you're

like oh but that's my dog's emergency

fund the like I really shouldn't be

withdrawing that and you can set up the

automatic contributions to each separate

account in the dollar amounts that you

laid out so it all happens automatically

there's no worries you just do it set it

once and forget about it and that's how

you still have your latte budget and you

can drink latte as well filming videos

about savings goals and you know your

savings goals are handled in the

background another bonus is that once

they're set up you really don't have to

think about it so as of today you could

be done and then in three years you just

like open your banking or like oh look I

have all that money I need to take that

dream vacation if you like this video I

would love it if you subscribe to the

channel hit the thumbs up button and

again remember send me a comment let me

know what your savings for I would love

love love to hear about it