It’s often difficult to remain psychologically and mentally invested when it comes to saving for future goals. How does one stay motivated and remain on track?
Some simple tips:
Name it
Make your savings goal specific and give it a name. It’s much harder to give up on a commitment to save for, say, “Sarah’s education” than on a generic savings plan.
Picture it
Imagine yourself reaching your goals and think about how this would make you feel. Create visual reminders – perhaps add photos to your fridge or create a vision board to keep you inspired.
Keep savings goals alive
Monitor how you’re doing, and occasionally check to see how close you are to your goal. Seeing progress can often be very motivating.
Start small
Start with short-term savings, like an emergency fund. This is easier to commit to, as it has immediate value. Then build on that.
Maintain a long-term view
When saving over the long term, people often get rattled by short-term fluctuations. By their very nature, markets fluctuate and, in most cases, when your time horizon allows, your investment is likely to recover.
Partner with a credible financial adviser or broker
Be sure to share all the key information about your current and desired financial situation, so your adviser or broker can advise you holistically, and with your unique context in mind. They will also identify the gaps in your current financial plan and help you address these.
*Laurencia Prinzonsky is the Marketing and Communications Manager for Sanlam Group
