How to set a savings goal (and hit it)

How to set a savings goal (and hit it)

While money can’t buy happiness, it can make lots of things in life possible – from making big purchases to moving home via covering unexpected bills. But you’re not alone if saving money consistently is something you struggle with.

Around 30% of UK adults are living with savings below £1,000, while 39% are under-saving for retirement. There are simple ways to improve your finances, though. Setting clear savings goals – rather than saving for the sake of it or not at all – is a great way to help you plan for the future.

What is a savings goal?

Savings goals are set amounts of money you want to put aside for things in the future that are important to you.

These could be short-term aims like a much-needed holiday or longer-term goals such as a deposit for a new home, or even retirement. You might start with one or have several goals at the same time in different areas of your life.

Whatever your plans, having clear, personal goals in mind can help you stay motivated to save money consistently. You’ll have a better idea of your financial situation on a day-to-day basis and feel more satisfied when you reach those targets on time.

How to set a savings goal

Choose something to save for

Savings goals are personal, so think about your life and where you’d like to be. What would you like to be doing in a few months’ or several years’ time? Here are some examples of different goals you might focus on:

Short-term savings goals – smaller targets you could hit within a year or so, such as an emergency fund, holiday, furniture or a new electronic gadget

Mid-term savings goals – bigger goals that might take you a few years to save for, such as a new car, home improvements or a wedding

Long-term savings goals – high-cost or far-off things for which you might save for over five years or more, such as a home deposit, your child’s university fees or retirement

Whatever your situation, try to choose things that excite and motivate you to set a plan and stick to it.

Work out the numbers

The next step is to crunch the numbers. You can get out a pen and paper for this but there are lots of handy tools online and in apps to make your life easier.

1. Check how much you can save

Start by checking your monthly income and outgoings to see what you can spare. This will mean creating a budget , if you don’t already have one.

Many experts recommend aiming to save around 20% of your income each month. If your current lifestyle means you struggle to save much, you might need to consider adjustments to make your goals achievable, such as:

Reducing how much you spend in certain areas such as socialising, subscriptions or travel

Finding ways to increase your income, for example taking on extra work or selling some of your old possessions

2. Work out how much you need

You can’t work out how to save for something without knowing how much it costs, so next up is some research.

This bit’s easy if your goal has a clear number attached to it, like a new laptop or sofa costing £400. But if your target is longer-term and more variable, you’ll have to make an estimate instead.

Matthew Scrafton, National Account Manager at Evolution Money, suggests:

“You could look up data on averages if it’s relevant to your goal, such as house or flight prices. Alternatively, speak to friends and family who’ve saved for similar things to see if they can give you a rough number to aim for.”

3. Set a realistic timeframe

Next, work out how long you need to save for. Again, this could be easy if you have a specific date to aim for like a wedding or a loved one’s birthday. If your deadline is less certain, you’ve got more flexibility to think about how you want to save towards it.

Putting more aside each month will help you hit your goal quicker. At the same time, be realistic about the sacrifices you’d need to make along the way. If you can save a little slower and still be able to enjoy life, this might be the more sustainable option.

4. Find your monthly savings total

Now you can simply divide how much you want to save by the number of months available. This will tell you how much you need to save each month to hit your goal.

If this number’s very different to what you worked out you can realistically spare from your monthly budget, you’ll need to make tweaks until it works out.

Putting your money into a separate savings account can help it grow faster as you’ll earn interest on it. It may also deter you from dipping into your savings, which is often tempting. It’s best to shop around and compare factors such as:

1. Interest rates (a percentage you can earn on top of what you put in)
2. Rules around adding and withdrawing money
3. Customer service ratings of different providers

The right option for you will usually depend on what deals providers are offering at the time and how long you have to save. For example:

• For a short-term savings goal such as an emergency fund, an easy-access savings account will allow you to access your savings quickly without paying fees.
• For longer-term aims where you don’t need the money for a while, you could choose a limited-access account with higher interest but stricter rules around withdrawals.

Once you’ve chosen an account, check whether the provider lets you name it and assign a target amount and date. For example, you might call yours:

• MOT for the Beast
• Italy 2026!
• My first home

These features are often available via mobile banking apps and could help motivate you by making your goals feel more real.

Decide how you’ll pay into it

In most cases, setting up automatic payments is the best way to save for short-term goals and longer ones too.

You could set up what’s called a standing order for a specific amount each month, ideally just after payday. This way you’ll prioritise your savings rather than risk the temptation of spending them earlier in the month.

Some savings account providers offer other handy features to help you get closer to your dreams, such as round-ups. If you have a current (everyday) account with the same provider, this automatically rounds up each transaction and moves the difference into your savings. Every penny helps!

Stay consistent

Many savings goals last several months or years and sticking to them isn’t easy, especially when life gets in the way. Here are some final tips on how to save for something that really matters to you:

Track and celebrate progress

Seeing the progress you’re making could be a strong motivator, especially when you’ve been setting aside money for a while. That could mean simply checking your savings account regularly or using specific tracker apps, which often come with features like progress bars.

You may also be able to set up alerts for each deposit or specific milestones.

Create visual reminders

Visual reminders are great ways to bring your goals to life. That might mean placing quotes, photos or drawings in places you’ll see them often, such as:

• Your desk at work
• Your phone background
• Popular spots around your home like the fridge or bathroom mirror

Adjust your plan over time

Things change in life, so don’t feel afraid to adjust your savings plan as and when you need to.

Thinking positively, that could be that you’re earning more and can save more as a result. On the flipside, you may have some unexpected costs to deal with or even wider economic issues such as inflation, meaning you have to pause your saving or take it slower.

Either way, being adaptable will make it even more satisfying when you eventually do reach your goals.

Reach your goals with Evolution Money

Knowing how to set a savings goal is one thing but sometimes saving can feel impossible or slower than you need it to be. There are other options.

As a responsible, FCA-regulated credit broker, we offer homeowner loans from £5,000 to £100,000 for a range of purposes, from home improvements to cars and debt consolidation. Check your eligibility today to see if a loan could be a good option for you.

For more handy guides on managing your money, visit our help hub.