6 easy ways to save for your goals
Congratulations, you have taken the first step towards saving for your goals. Saving for your goals can often be challenging but it doesn't have to be. Here are a few tips for you:
1. Understand ‘savings’
The first thing you need to do is to change the way you understand savings. Usually, people find savings difficult because they think of savings as money that is left after all your expenses. When you think of savings as leftovers, you have very little control over them and you end up focusing on your expenses more than your savings. In order to save successfully, your savings need to be put aside before your expenses. We call this the 'Save before you spend' rule.
2. Set your goals:
What are all the things you are saving for- they can be short-term like buying a TV or long term like saving for a wedding or house etc. Give each goal a timeline for example ‘I want to buy a tv in 6 months’ or ‘I want to buy my own house in 5 years’. You should also add one goal there which is saving for emergencies otherwise you will suffer when there is an emergency.
3. Do your research:
Find out how much you need to save for each goal and assign a cost to each goal.
4. Check your finances:
Take a real look at your finances and find out what are the expenses that you need to spend on and which ones can you reduce. Then, decide on an amount that you can save every month and make sure you put it in your savings account before you start spending.
5. Plan your goals:
Figure out what goals are the most important to you and prioritise them first. Put a percentage of your savings (ideally 20%) towards the goals you want to save for first.
6. Track your progress: The last and most important step is to keep tracking your progress. You can use your Oraan goals tracker on the Oraan App. Most importantly, even if you make mistakes don't get discouraged and keep tracking your goals.