Saving Goals: A financial planner’s guide

What are Saving Goals?

At their simplest, saving goals are the things you want to put money aside for, both short-term and long-term. But in practice, they do something far more important. They give your money a purpose.

Instead of “I need to save more,” a saving goal turns it into something clear and manageable such as

• “I want £5,000 in an emergency fund within 12 months.”
  
• “I’m saving £300 a month for a house deposit.”
  
• “I’m putting away 10% of my income into my retirement pot.”
  

Setting a saving goal is the first step to making it become a reality. They should, however, be SMART, which stands for Specific, Measurable, Achievable, Relevant and Time-bound. This may seem obvious, but many people overlook it and then wonder why they haven’t achieved the goal they set out to reach. We will explore examples of what these look like later. 

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Why Saving Goals Matter

When I sit down with clients to go through their financial plans, I often notice an almost immediate change once we define their goals. Suddenly, the numbers start to click. Saving money stops feeling like a chore and starts to feel meaningful, part of a bigger plan. Here are three key reasons why having savings goals really matters.

1. They reduce financial stress

Uncertainty is usually stressful. Having a clear plan, even a simple one, removes a lot of the unknowns. You know what you’re working towards, and you know what each pound is doing for you.

2. They help you make better decisions

When you know your priorities, it becomes easier to decide what to do next:

• Should you overpay the mortgage?
• Should you save more for retirement?
• Should you prioritise a holiday or building your emergency fund?
  

Goals provide a framework for making the right decisions and 

3. They protect your future self

Life happens, cars break down, boilers give up, jobs change. When you’ve got savings in place, you’re not relying on high-interest borrowing or scrambling for solutions. You’re prepared.

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Types of Saving Goals and How They Usually Look in Real Life

We all have different financial situations; however, most savings goals can be treated the same way and usually tend to fall into one of these categories. 

Short-term goals (0–2 years)

These usually include:

• Building an emergency fund
• Car repairs or replacement
• Holidays
• Small home renovations
• Christmas or yearly events
  

Typical example: Save £2,000 for an emergency fund over 10 months (£200 a month).

Medium-term goals (3–7 years)

These might be:

• Wedding savings
• House deposit
• Paying off debts
• A once-in-a-lifetime holiday
  

It’s not always the case but these tend to be for larger sums of money which require more time to achieve.

Typical example: Save £15,000 for a house deposit over five years. (£250 a month)

Long-term goals (7+ years)

• Retirement
• Funding children’s education
• Financial independence
  

These are usually the big ones which require a lengthy period in order to make them achievable.

Typical example: Contribute 15% of income into a pension or retirement plan for the remainder of employment (25 years)

You’re likely to have more than one savings goal at a time, which could include a mix of short, medium, and long-term. It’s important to prioritise goals and subsequently, it may not be possible to run all your ideal goals at the same time.        

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How to Set Saving Goals That Actually Work

Here’s how I help my clients set goals that stick. You want to ensure that your goals are SMART to give you the best chance of achieving them. “Save more” is not a goal. 

Before you set your SMART goals, start with what actually matters to you. Common questions you may ask yourself are: 

• What would make my life easier in the next 12 months?
  
• What would future-me thank me for?
  
• What keeps me up at night financially?
  

It’s important to make your goals personal and tailored to what your desired outcome is. 

S = Specific:The goal should be clear, well defined and leaves no room for interpretation. It should answer “What needs to be accomplished’ 

M = Measurable:  Ensure it is possible to measure progress. To do this it;s important to include specific numbers and length of time. 

A = Acheivable: A goal you can’t reach isn’t motivating. It’s frustrating. Always start with what’s feasible and build from there.

R = Relevant. The goal should align with your overall desired outcome. You might be setting a short-term goal that builds toward a larger longer-term objective.

T = Time bound: Ensure you set a point in time when the goal needs to be completed. Setting an end date helps keep you on track, even if you adjust them later, they give you direction.

The last thing is to review and adjust regularly. Life changes and this may mean your goals need to too.

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Final Thoughts: Start Small, But Smart

Saving goals can affect your lifestyle, so it’s important to find the right balance. Make sure you’re comfortable with the short-term sacrifices in order to enjoy the long-term benefits. Visualising how achieving your goals will improve your life can be a powerful motivator and help you take control of your financial future.

If you’re unsure where to start or you’ve been putting this off for a while, don’t worry. Most people are in the same position until they sit down with a financial planner and talk it through. The important thing is that you start. Even the smallest goal is a step in the right direction.

I like to think of savings goals as little gifts for the future you. If you could give yourself a gift of money in the future, how much would it be and what would you want to do with it? 

If you would like help setting personalised goals based on your circumstances, please get in touch and I’ll help you prioritise what’s important to you so you can take control of your financial future.