A savings target is a great thing to have because it will allow you to have some sort of goal when it comes to saving money. Saving money isn’t something that most people like to do, it is something that they do because they have to. However, if you don’t know what you are saving for, it might cause you to question why you should save in the first place.
A great savings target is to save at least 10 percent of your monthly pay. Consider that your bills shouldn’t really be more than 40 percent of your total income, you should be able to find 10 percent of your monthly pay to save. That and bills will add up to no more than half of your total expenditures every month.
Even if you only make 2,000 a month it can still go a long way toward building a savings account that you can be proud of. Saving 200 dollars a month for 12 months will give you 2,400 dollars in your bank account. Continue doing that for even three years and you will have over 7,000 dollars in your bank account. That can really get you through some rough times.
A savings target will make sure that you are saving in line with other budget goals. Instead of forcing to save your entire paycheck, or saving a couple of cents a week, you will have a good goal that is reasonable. The best laid plans can become irrelevant if the goals aren’t reasonable. Saving your entire paycheck won’t work, but saving enough so that you can have some money without missing payments on your house.
Saving money is something that you have to do as a habit. You can’t save 1,000 dollars one time and then never do it again. What happens if you do this? You end up not saving anything ever again and you probably just end up taking the money back because you don’t have any rhyme or reason for saving, nor is it a good money habit for you yet.
Saving money is something that we all have to do because we cannot work forever, nor can we expect our money to always be there. The economy goes down, a house loses value, or a job is lost. Each situation forces us to take a loss of income, so where are we going to get our money? Hopefully it will come from a healthy dose of savings to get us through.