Your First Savings Goal: How to set achievable savings milestones.

Starting to save money can feel overwhelming, especially if you’ve never done it before. But the key to success is breaking it down into small, achievable steps. Setting a savings goal gives you a clear target to work toward and keeps you motivated along the way.

Here’s how to set your first savings goal and make it happen.

Why Set a Savings Goal?

Having a savings goal helps you:

Stay focused and motivated.
Measure your progress over time.
Make better decisions about how to spend or save money.

Step 1: Choose a Specific Goal

Think about what you want to save for. Your goal could be something fun, like a concert ticket or a new phone, or something practical, like an emergency fund or a school trip.

Make your goal specific and clear, like:

“Save £300 for a laptop by the end of summer.”
“Put aside £50 for a friend’s birthday gift by next month.”

Having a clear target makes it easier to plan.

Step 2: Calculate How Much You Need

Work out the total cost of your goal. If it’s something you’re buying, check the price online or in stores. Don’t forget to include extra costs like taxes, delivery fees, or accessories.

For example:

A concert ticket might cost £75, but adding transportation and snacks could bring the total to £100.

Knowing the exact amount helps you plan realistically.

Step 3: Set a Deadline

Decide when you want to reach your goal. A deadline gives you a sense of urgency and helps you figure out how much to save each week or month.

For example:

If your goal is to save £200 in 4 months, divide £200 by 4 months = £50 per month.

Step 4: Break It Down into Milestones

Big goals can feel intimidating, so break them into smaller milestones. For example:

If your goal is to save £500, aim to save £100 every month for 5 months.
Celebrate small wins along the way, like reaching the halfway point.

Breaking it down makes it manageable and keeps you motivated.

Step 5: Make a Savings Plan

Decide how you’ll save the money. Here are a few ideas:

Set Aside a Percentage of Your Income: If you earn £100 a month, saving 20% means putting away £20.
Use a Savings Jar: If you’re not using a bank account yet, a labeled jar can help you stay organized.
Automate Your Savings: If you have a bank account, set up automatic transfers to a savings account.

Step 6: Track Your Progress

Keep an eye on your savings to stay on track. You can:

Use a simple notebook or a savings tracker app.
Update your progress weekly or monthly.
Reward yourself when you hit key milestones!

Step 7: Stay Flexible

Sometimes, unexpected expenses come up, or you may fall behind on your goal. That’s okay! Adjust your timeline or savings amount if needed. The important thing is to keep going.

Example: Josh’s First Savings Goal

Josh is 16 and wants to save £150 for a pair of running shoes. Here’s his plan:

Goal: Save £150 in 3 months.
Deadline: End of May.
Weekly Savings: £12.50 (calculated by dividing £150 by 12 weeks).
Plan: Save half of his weekly allowance and skip eating out for a few months.

By sticking to his plan, Josh reaches his goal and buys the shoes just in time for track season.

Final Thoughts

Setting a savings goal doesn’t have to be complicated. By choosing a specific target, breaking it down into steps, and tracking your progress, you can achieve your goal faster than you think.

What’s your first savings goal? Share your plans in the comments below—I’d love to hear about them!

Here’s to achieving your goals,
Tobey