Now my debts are back under control and I’m making a steady income it’s time to look at my saving goals in the short and long term. If I can pay debt back quickly then surely I can save money just as quick.
Here are My Saving Targets:
Regular Saving: Save £250 per month in a Savings Account.
Emergency Fund: £6,000 – Just in case of any financial emergencies to give me some breathing room. I call this my Kitty and I will put any extra leftovers in each month. People change, change jobs, lose jobs, circumstances and situation change so my Kitty will be money to fall back on just in case.
Travel Savings: £3,500 – Set aside for holidays and seeing the world with my girlfriend.
House Deposit: £25,000 – This is the big one. Buying land in nice areas is expensive so a large deposit will be needed to get a foot on the property ladder. I’ve been renting for several years since my student days. I love the property but it lacks something, I have come to the conclusion I want a place that I can own. The problem with renting is it always feels insecure and temporary. You can’t add your own personality to the property or breathe any life into the rooms because of the rules of the tenancy agreement.
Retirement/Pension Fund: At least 20% of monthly income.
Your saving potential will depend on your monthly expenses, outstanding debt and the amount of income you bring in each month. Could you live off less? Do you actually need all the money you earn each month? If you can live off less you can save more money.
These are big saving goals I’ve set for us. I thing the first saving goal should always be an emergency fund. It’s important to have a cushion of money to fall back on, just in case. Saving for the future and life’s little setbacks is vital, so build up your kitty.
The aim is to save around 20-30% of my income but it will depend on how the business side of things go. Getting into the habit of saving will provide for your future.
