Keep Your Savings Goals Small and Frequently Measurable

As a businessperson, you probably have at least several career-oriented goals going on at the same time. They may be big, small, short-term, medium-term, long-term, you name it. When it comes to personal savings, however, it’s often best to start with small goals. Once you have the hang of them, you can make your goals bigger if you want. (You absolutely don’t have to; why fix something that isn’t broken?) Here’s a look at the strategy behind keeping savings goals small and frequently measurable.

You Are More Likely to Succeed

Success breeds more success. On the other hand, failure can cause you to abandon a plan or idea for a long time, if not forever. Small goals increase the odds of success. Frequently measuring them also helps you stay on track and gives you more chances to succeed. The effectiveness of your endeavor does not hinge on one big day a year but instead on one day a month, or perhaps even one day a week. That way, if you don’t meet a goal on occasion, you can always say, “I’ll meet it next week [or next month].”

Details Do Matter

When it comes to personal savings, one action can make a huge difference. So, a seemingly small goal such as, “I will evaluate my car insurance on the 15th of the next month,” can reap significant rewards. Through an insurance comparison tool such as www.carinsurancecheap.net, you might discover that you’ve been seriously overpaying on your insurance for years. Your car may have gotten older, your driving record could have improved along with your credit record, and you might drive your car less. All add up to good savings every month.

This seemingly small, even “boring” goal can do a lot. Apply it to other types of insurance: home or renter’s, life, health, you name it, and you could end up saving several hundred dollars a month.

You Have Room for Other Things

One reason why huge goals or projects fail is that they leave room for little else in your life. If you set a huge savings goal that requires a long time to measure (for example, “I will save $20,000 in one year”), it may overshadow other aspects of your life. You may find yourself not going out with friends, eating food you do not enjoy because it is cheaper, and forgoing pleasures because of that big amount you are working with.

Alternatively, if your goal was something such as, “I will get all of my print, audio, and ebooks from the library this month instead of purchasing them,” you still have room for many other things in your life. And you’re more likely to stick with the library the majority of the time in the months that come. You may not save, say, $20,000 in a year, but you will have saved some serious money and still be succeeding.

You Stay Flexible

Small and frequently measurable savings goals also enable you to stay flexible. For example, getting downsized from full-time to part-time may make a goal such as saving $20,000 in one year simply not possible. On the other hand, if your goals are monthly and not contingent on exact amounts, you have the ability to keep going as you always did.

Speaking of flexibility (and failure), measuring your savings goals in exact amounts may set you up for disappointment. Some examples of savings goals are:

  •  Evaluating car, home, health, and life insurance
  •  Packing lunch three times a week instead of eating out
  •  Getting haircuts every two months instead of every month
  •  Carpooling once a week
  •  Riding your bike to work three days a week instead of driving
  •  Setting up a retirement plan

In none of them is a dollar amount mentioned. In fact, it’s even feasible that costs could go up. For example, if you have minimum amounts of insurance coverage, evaluating your needs could result in you realizing that you want more protection. However, you may be more likely to succeed with these goals because they constitute realistic actions rather than an end result.

Many people are not in a position where they can save a lot of money right away. Of course, a lucky few people can sell something such as a second car and get thousands of dollars. Successful, long-term savings is often founded on starting small and actionable.

Image courtesy of jk1991 at digitalphotos.net

Share Button

The Most Effective Ways To Cut Your Heating Bills

As winter draws near, the thought of increased heating bills may fill you with dread; however, there are many ways in which you can save money on your winter heating bills to leave you with more money to spend on that all-important summer holiday!

cut your heating bills

Choosing a provider

One of the simplest ways to cut your energy bills is to look at whether you would be financially better off if you switched suppliers. Just as you would if you were making a broadband comparison, it is easy enough to go online and compare the deals offered by the various energy suppliers. Whether or not you decide to stay with your existing supplier, there is money to be saved by using the same supplier for your gas and electricity as well as paying your bills by direct debit and maybe even by using online rather than paper billing.

Apart from the big six energy suppliers in the UK, there are some smaller suppliers that could offer you a significant saving. Whoever your supplier is, make sure you are being offered the cheapest tariff and ensure that you understand the tariff you are on and how it is worked out. Most suppliers will not put you on their cheapest tariff unless you ask them about it, so it is worth examining your options.

Changes you can make to your home

As well as saving money by making sure you are using the cheapest and most appropriate supplier for you, there are savings you can make to your heating bills by changing your set-up at home.

Make sure that you have wall and loft insulation, as not having these can mean that you could be losing up to 33% of the heat in your home, so you will be paying for heating you cannot use. In addition, try to ensure that windows, doors, floors and fireplaces that are not in use are also insulated from draughts.

Special foil panels inserted behind your radiators mean that more of the heat will be in your rooms, which will ultimately reduce your bills. Savings can also be made by installing heating controls on your radiators, which allow you to control the temperature in each room.

If you are in need of a new boiler it is possible to apply for Green Deal finance, which enables you to take out a low-cost loan to make energy-saving home improvements that can be paid back through your energy bills. Provided that you need one, having a new boiler that is more energy efficient is a
great way to save money on bills.

Finally, if you can keep yourself warm you will not need the heating on as much, thereby saving money on your bills. Wearing an extra layer of clothing and doing some exercise are just two of the ways that you can achieve this.

So, there are many ways to save money on your heating bills this winter, all of which only require a small amount of effort for decent potential returns.

Image Credit:
Free Digital Photos.Net

Share Button

Find the Best Rates for Your Savings

Every country in the world is facing economic problem. The problem is that the world and every individual in it have limited resources in relation to the wants and needs we have resulting to trade deficits, currency problems, stock market fiasco, unemployment and poor job growth because of recessions, etc.

We don’t know what will happen in the future so in this money-pinching world, saving for the future is a must. Money is a product of our hard work and time spent. We should be wise in investing and keeping it. It is best to keep it the bank than in our house. Have you ever think of saving through CD? Well, I am not referring to the compact disk but to the certificate of deposits. Savings account and certificate of deposits are similar in terms of security and both are virtually risk free. But they differ in terms of time table and interest rate. The amount of deposit is kept in the CD for specific period of time. The longer the time period the money is being kept, the higher the interest rate will generally be and the interest rate offered for this type of financial product is generally higher than if the same amount of money is placed into a savings account for the same period of time.

However, CD rates continue to decline because of the global economic crisis. The best thing to do is to find the best CD rates by monitoring the bank rates. Don’t be lazy to browse the web for the sites that can help you for your savings is at stake or maybe your future too.

Share Button