A goal with a target amount, a date and a monthly figure is much easier to keep than "save more".
Set the goal
- Name it: emergency fund, holiday, deposit, new laptop.
- Pick a target amount: for an emergency fund, a common first target is one month of essential costs.
- Pick a date: a deadline turns a wish into a plan.
Work out the monthly amount
Divide the target by the number of months. Saving $1,200 in 12 months takes $100 a month. If that is too much, move the date, not the goal.
Make it automatic
Set a transfer on payday to a separate savings account. Money that never reaches your spending account is harder to spend by accident.
Track progress and celebrate small wins
Check progress each month. Seeing a goal fill up keeps you going, and a streak of months on track builds the habit.
In Cashflow
Cashflow: Budget Manager lets you set savings goals, track the accounts they sit in, keep a streak going, and see progress next to your budgets and cashflow reports.
For tips on building a first emergency fund, see money tips and the 50/30/20 budget rule.
General information, not financial, tax or legal advice.
Frequently asked questions
How big should my first savings goal be?
Many people start with one month of essential costs, then work towards three to six months.
Should savings sit in a separate account?
Keeping it separate from spending money makes it harder to spend by accident.
What if I miss a month?
Carry on next month and, if needed, move the target date. Consistency over time matters more than one missed month.