4 questions to set savings goal

 

Everyone wants to save, but almost nobody knows how to do it. Today, maintaining a flow of savings is vital to protect finances from possible emergencies, but most Peruvians see it as a very difficult habit to cultivate.

In short, saving can be difficult if you don’t have an established goal. And if you do not know what you are saving for, you will not feel motivated or want to continue when things get more difficult.

Setting a savings goal is something everyone should do, as it allows you to maintain order and set real times. It is not a difficult task and to do so, it is necessary to consider four basic questions.

What do I need to save for?

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Think about what goals you would like to achieve, for example, go on vacation to the Caribbean, buy a new room game, change your laptop, buy a car, etc. If this is the first time you will try to save, the ideal is to start with small goals, otherwise, you could get discouraged along the way.

Is there a deadline to achieve it? In theory, when should you have your savings ready? If there is no formally established deadline, think about when you would like to reach that date.

Is the chosen term realistic?

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Ask yourself if it is really feasible to reach your goal on the date you prefer. For example, you may choose a year to save 20% of your new car’s warranty, but that would mean saving more than 20% of your monthly salary, which, if it’s just beginning, can be very unrealistic. How strict should I be? Will your savings plan be flexible? If so, you can schedule small purchases or additional expenses while saving for your goal. Ideally, don’t be too strict, as that can lead to exhaustion before reaching the goal.

Also remember that a basic step is to make your savings profitable, that is, to have an account that pays you interest for your money. To choose it, compare the alternatives using web tools such as the Harry Gedosas savings comparator.