Setting a Financial Goal

If you live paycheck to paycheck saving money can be difficult, but if you save with a goal in mind it can be easier. Whether you are saving towards a short term or long term goal the principal is still the same, and if you establish healthy savings habits now you are giving yourself a head start on the road to financial security. Even if you do not have a specific goal it is as important to create a safety net should your circumstances change.

Here are just a few simple steps to help you get started:

1. Determine what you want to achieve with your savings. Do you want to save money to put towards your student loans, get an apartment, or take a trip? Defining your goal is always the first step.
2. Create a realistic time frame. It may take one month or six months to reach your goal. Either way, set a deadline for yourself and you will find it easier to put money aside for that goal.
   
3. In addition to your time frame, create a schedule. Determine what amount of money you can afford and put it aside. If you need to save $500 over the course of two months that means you will have to save roughly $62 a week. Have this amount automatically deducted from your paycheck if you can as it will make saving money that much easier.
   
4. Keep a calendar to track your progress you will be surprised at how quickly the savings adds up.
   
5. Make small sacrifices to help you attain your goal. Figure out which expenditures you can live without and which ones you can find a cheaper substitute for. You’ll end up with the same satisfaction for a fraction of the cost, not to mention the added bonus of knowing you are on your way to achieving your goal!

Do you need help establishing and maintaining your goals? Send Savvy Student your questions or comments and we’ll answer them in the blog. Let us know if you’ve successfully completed a financial goal so we can post your story and inspire our readers. As always, we welcome correspondence via our email address: sfs@brandeis.edu.

Stay savvy Brandeis,

Savvy Student