That saving habit can let you live the dream
MANY of us dream of achieving a long-held ambition – a relaxing cruise, or a stylish home makeover.
But few people consider the cost.
Ford Money asked people how much money they believed they would need to realise their most important ambition.
The average estimate was £59,305.
For people in their 40s, the cost was reckoned to be as high as £68,820. Not exactly a cakewalk, then. In fact, it could take up to 25 years to save enough cash to make your dream a reality.
It sounds daunting, but here’s how you can achieve your savings goal more quickly.
Life and career coach Honey Langcaster-James provided these tips for Ford Money:
Create a monthly savings plan by factoring in little treats every so often. Never completely starve yourself of life’s indulgences as it can make it more difficult to stick to your plan.
Start early. It’s always easier to maintain good savings habits if you begin when you’re younger. However, it’s never too late. The earlier you start saving, the more you will benefit from compound interest, which will feel particularly rewarding.
This means you’ll earn interest on the interest you receive each year. This kind of bonus can help keep you motivated. It also builds
your savings without you having to deposit as much to reach your goal.
Consider having a no-spend week each month. Prepare for it the week before and try to refrain from buying anything you haven’t planned for.
An exercise in self-discipline can make you more confident in your ability to manage savings effectively. Proving to yourself you can live without spending excessively is a great way to change your mindset.