Setting Savings Account Goals Helps

Britons who add to their savings accounts each month with a specific goal in mind save more than those that don’t have a goal.

Research from NS&I shows that savers who set themselves goals are likely to save over 40% more each month than those without such a savings objective.

Around 20% of those with goals save over£250 per month, compared with less than 10% of those without such goals.

The biggest motivation for saving is to buy a home, other priorities include:

• Saving for a holiday or special occasion
• Saving in case of an emergency
• Saving for retirement
• Saving for a car
• Saving for children’s future

The amount being put into savings accounts is dropping, perhaps as a result of the financial difficulty many currently face. Some 13% of Britons don’t have any savings at all and 20% have less than £1000.

NS&I savings spokesperson, John Prout said: “We would encourage people to think carefully about their daily expenditure, and use a goal to motivate them to help boost their savings pot.

“Keeping a weekly diary of spending can be a good way to keep track of outgoings and there are lots of great online tools and free apps available to help with this. Setting small achievable objectives, such as bringing coffee to work in a flask and making a tasty packed lunch instead of buying lunch, are easy ways to make considerable savings and increase long-term financial security.”

MoneyHighStreet comments: “Personal finance my be difficult for many but clearly, as this research shows, setting goals helps.

“Do remember though that if you have cash in savings accounts, make sure you regularly check the interest rates being paid to make sure you’re continuing to get the best deal you can – if need be move your money to another account to get improved returns.

“If your’re trying to save money, as many are, particularly with the prospect of buying christmas presents ahead, look at how you can use discount vouchers and retailer reward points to help your money go further.