Chapter 2: What are Savings Goals?

by Akash Khaturia

Savings is a vital part of your overall financial wellness. Every dream or aspiration that you have requires money and setting specific saving goals will help you achieve them. Earmarking your money for savings every month will help you build good financial habits and we now know that healthy financial habits are the backbone of financial wellness and resilience.

So in this chapter, we will explore what are savings goals and how can we set and reach our savings goals.

What are Savings Goals?

A savings goal is an objective that you set for saving your money, which can be driven by your needs or wants. A savings goal can be a short-term goal like buying a new laptop or a long-term goal like saving for your retirement. Either way, saving for specific goals can make the process of achieving them smoother and well-organised.

Some examples of Savings Goals include:

  • Saving for your education
  • Building an emergency fund
  • Saving for a vacation or to buy electronic gadgets
  • Saving for your wedding
  • Saving to start your business
  • Saving for your retirement

You may save for one or more than one goal at a time but planning and budgeting for them in your financial plan is essential.

So what can you do to set good savings goals and to ensure that you reach them? Let’s explore it in the next chapter.