Budgeting & Savings

6 Simple Tips To Achieve Your Savings Goals

Setting and achieving your savings goals can feel daunting, but with the right mindset and approach, it becomes a manageable and rewarding endeavour.Saving money is an important part of managing your finances because the stashed-away cash can help you through emergencies, grow your wealth, and secure your financial future well into your golden years.Many people struggle with saving, often challenged by frustrating hurdles. One of the most common challenges is a lack of financial ability. Others with a substantial income may struggle due to lifestyle inflation. As you earn more, expenses tend to increase, apparently leaving little to save, despite a higher income.We’ll explore ways to help you navigate, set better goals, and overcome obstacles to a secure financial future.#1 Start smallCan't save much? No problem! Start by tucking away just $5-10 weekly – the cost of a couple of lattes.These small victories build momentum, confidence and the realisation that big goals are achievable through consistent, bite-sized efforts.Once you get used to it, start increasing the amount. Soon, your small savings will grow into a significant sum and before you know it, your modest seeds will bloom into a bountiful savings harvest.#2 "Keep the change"Don't ignore your loose change. Save those coins and small notes in a jar or micro-savings account every night.You'll be surprised how quickly these small amounts add up. Some micro-savings apps even pay you interest daily. Let your loose change grow over time.#3 Treat saving money like paying rentTreat saving like a non-negotiable expense, just like rent. Schedule automatic transfers to a dedicated savings account immediately after each payday.This way, saving becomes a priority, helping to ensure your future financial security.#4 The “pay-in-full" rule: Saving for splurge-worthy purchasesDon't splurge impulsively. Only buy that new gadget or pricey item when you've saved the full amount in advance.This builds strong saving habits and discipline, helping you practise delayed gratification. With each pre-saving milestone achieved, the want becomes a guilt-free reward. Plus, you won't go into debt for your 'wants’.#5 "Lockbox your savings: The “no peeking” rule against impulse spendingTransfer some of your savings into an account with limited access to avoid impulsive spending.By creating this barrier and following the 'no peeking' rule, you'll resist the urge to dip into your savings. Each disciplined act of looking away fortifies yourself control and brings you closer to your long-term financial goals.#6 Set clear and achievable financial goalsInstead of vague resolutions like "save more money," write down specific, measurable goals that are realistic and time bound.For example, "Save $5000 for an emergency fund by December 31, 2025." Clear, well-defined goals make it easier to track your progress and stay motivated.Be disciplined with your savings goalsA lack of knowledge about savings can lead us astray, as can setting unrealistic or idealistic goals. While dreaming big is great, setting unattainable targets can lead to frustration and disillusion.On the other hand, vague goals like "I want to save more money" often are not sufficiently motivating.Procrastination and not prioritising saving are also obstacles. It's easy to delay saving, thinking you'll start "next month," but that elusive "next month" can stretch into years.Financial discipline is crucial. Even with a good plan, without discipline, saving plans to work out. Discipline ties everything together, helping you save consistently by prioritising tough choices.This content is part of the Temasek – Financial Times Challenge, a financial literacy education series in Singapore for youths.