Goal Setting Your Way to Faster Savings

"Annual income twenty pounds, annual expenditure nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pound ought and six, result misery" ' David Copperfield.

Charles Dickens wrote this in 1849, before the advent of high interest savings accounts! While the figures and currency have changed over the years, it is still true that those who have the will power to save for a rainy day enjoy freedom from money worries. The extra income from interest is simply icing on the cake.

For successful saving, you have to create saving goals. These goals must be short term goals that are reachable. When you get your monthly income, many expenses come to your mind. Sometimes, you spend money and empty your wallet. At this scenario, if you plan for a vacation, you will not have any savings and so, you will execute the plan with your credit card. When you return after vacation, you have to face piles of debts and then spend money to meet these debts. To avoid this tough situation, think about saving money from the beginning to meet your vacation expenses. Preparing for your trip by saving small amounts regularly will mean you only need to pack holidays clothes, not your money worries.

When you don't have saving gaols, you will not save money. A savings target makes cutting unnecessary items and containing expenses much easier. Setting an interesting saving goal such as buying a luxurious TV helps you save money because you expect more luxury and give up small luxurious expenses. Hitting a smaller, easier target makes aiming for larger goals more feasible. Saving money for a car and home are bigger saving plans and it may take years to reach your goal.

The saving goals that you set for yourself must be realistic. After all your basic expenditure if only $100 remains in your hands every month, you cannot save more than that. A general rule of thumb is to save 10% of your income. Rather than putting balance money in high interest savings account, practise paying for your savings account at the start of the month. This way, money meant for savings will not remain in your wallet and you cannot spend it for any luxury.

Make the most of your savings by comparing the online offerings of different banks, and choose a high interest account. Some banks offer cash bonus if you do no withdrawals for a specific period of time. Comparison shopping will give you many options from which you can choose the one you like. Act today - plan your regular deposit and cut spending where you can. A little sacrifice at the beginning will reap you huge benefits later. By your experience you will understand that savings actually saves you lot of money because you don't have to pay interest for debts.


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This high interest savings article was written by Richard Greenwood whose network of sites have been helping Australian consumers find the best savings account since early 2007.