Sticking to a Purpose Driven Savings Plan
Written by Eugenie O.
it's imperative to find a balance between spending money on the things you desire and enjoy, without jeopardizing your savings goals.
That's right, savings! These funds allow us to fulfill our dreams, aspirations, and goals. We love to dream, but sometimes the practical application is a bit more challenging. The truth is you can absolutely have it all while still saving for your future.
Our idea of how much money we need to save is usually based on how much our financial goals will cost. We aspire to achieve those goals, yet somehow, we wonder how we aren't in the best financial position to actually achieve them. We can often feel overwhelmed by our goals, which can lead to overspending or holding an all-or-nothing mentality.
Here are 5 tips to create your own savings plan and become more intentional about your financial goals:
1. Set purpose-driven savings goals and commit to them through a personal contract
In order to reach your most purpose driven savings goals, you need to approach the process with an open heart and ask yourself how your savings goals contribute to your greater purpose. Get clear on why you set these goals and how they will impact your life. Then, make a commitment to yourself. You can even design a personal Savings Contract to help give you real accountability.
2. Find out your actual cost of living without feeling restricted
Look closely at your cost of living (Including some of those often-forgotten expenses) and determine what works for you. Although saving for your purpose-driven goals can take some real dedication and sacrifice in some areas, it's essential to keep a balance between cutting back on some elements of your current lifestyle and saving for the future. While it is true that just $30 of unplanned spending per day amounts to a whopping $10,800 annually, it's imperative to find a balance between spending money on the things you desire and enjoy without jeopardizing your savings goals.
Let’s talk about getting your nails done as an example. If you enjoy this activity and it plays a crucial role in feeling like your best self, don't cut it. Perhaps the weekly after-work drinks are starting to get a bit redundant. Or that unused gym membership isn’t something you need after all. Staying on track with your savings goals is all about balance.
Cutting back too much will increase your risk of making impulsive spending decisions that jeopardize your progress.
3. Create a savings budget and a timeline for your top three goals
By determining your well-balanced cost of living, you will be able to calculate how much you have leftover to contribute to savings. To define how much to contribute each paycheque, set a timeline for your top three savings goals. Setting a timeline with an end date for your savings goals creates a sense of urgency, encouraging you to stay focused and will motivate you even further. Based on your timeline, calculate how much you need to save each month to reach your goals. Next, step up automatic savings contributions into your accounts bi-weekly or after each paycheque to ensure the money cannot be spent elsewhere.
You can add your savings goals to your Savings Contract (discussed in Step #1) and re-read it every week to keep your goals and commitment top of mind.
4. Track your savings and celebrate your achievements
Suppose you want to save $30,000 for a down payment. You can break that goal into mini-milestones. Create a savings thermometer on excel or by hand and keep it hanging on your wall where you can see it each and every day. Celebrate every time you hit a milestone, whether it's $2,500 or $5,000. When you celebrate your wins, you are more likely to stick to your savings goals.
5. Remove money blocks and get ready to receive
Make sure to journal about your experience and process any doubts or limiting beliefs that arise as you begin to work your savings plan. These thoughts will block your abundance and your ability to receive the money and opportunities that will help you reach your goals.
Now you are ready to fully embrace your purpose driven savings plan and absolutely crush it!
Eugenie is a marketing professional who moved from Montreal to Saskatchewan, Canada (talk about a change). She is passionate about horses, and spends most of her free time at the barn. Feel free to follow her journey on Instagram @eugenieofficer13
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