How to save to reach your goals

The moment you start earning regular or occasional income, you face a series of decisions: tracking your spending, saving, shopping based on what you want and need.

Every expense is driven by a need, and every need follows a clear goal. Goals can range from small purchases - like a new smartphone - to bigger ones like a car or a house, all the way to long-term savings for retirement or your children’s future through a bank.

You can also plan and save for life events - higher education, a trip, a wedding, a birthday, and so on. And even if you can’t predict the unexpected, you can build an emergency fund that’ll come in handy when you need it.

Here are a few basic steps to help you get started.

Set a budget and stick to it

To manage your spending and save better, build a monthly budget. This budget will help you keep an eye on your spending and reach your goals. When you build your monthly budget, overestimate your expenses a little. That way you’ll likely have leftover funds, which can go straight into savings.

Save by percentage

Set a fixed amount to put aside every month - that becomes your savings over time. Ideally, set aside 10 to 20% of every paycheck. You can also try the 20 30 50 rule: save 20% of your salary, spend 30% on leisure, and use 50% for fixed expenses.

Don’t forget to build an emergency fund that can cover 3 to 6 months of unexpected expenses.

To reach your goals faster, define them using the SMART method. Here are a few examples to help.

Your goal should be SPECIFIC

A clear goal helps you reach it more effectively.

Example: Save enough for a trip.

A MEASURABLE goal

It shows you the real task ahead. By using actual numbers, you can measure your progress along the way.

Example: My trip will cost 500,000 F, and I have 100,000 F saved.

The goal is ATTAINABLE

When it’s realistic and within your reach.

Example: I know I can save enough every week to pay for this trip.

Your goal should be REALISTIC

Only set a goal if you know it’ll be meaningful in the long run.

Example: I’m saving to stay at a guesthouse during my trip because it’s cheaper than a hotel.

Your goal should be TIME-BOUND

Time-bound goals have a real deadline. Setting a deadline keeps you committed to reaching it.

Example: I want to travel in 6 months.

The best way to reach your financial goals is to create a vault in the Djamo app. The vault lets you track your savings, set goals and deadlines, and receive free reminders to help you stay on track.