Money on the mind
Having a goal to save for can provide motivation to actually put money aside – so all respondents are doing well in that regard. The findings of this poll echo those of the second annual ING International Survey on Savings, launched last week. In that larger poll – which focused only on Europe rather than the global respondents of the web-based poll – saving for an emergency fund was the most popular top savings goal (31%) followed by children (11%) and housing (10%). However, despite good intensions, many in the international survey are struggling to save; only 59% are putting aside enough to hit their emergency fund savings goal – something that’s worth a re-think.
Put into practice
With experts recommending three-to-six months of take home pay to be a good buffer for an emergency fund, it can be a good idea to make a basic budget and put savings goals into practice sooner rather than later. In the eZonomics article Five tips to nudge better savings habits we take inspiration from the influential Nudge book to make small changes that can make a big impact for the better. Try comparing your savings habits of others like you – or perhaps better – to financially savvy friends to harness the positive power of peer pressure. Other ideas include setting up email reminders about your goal as an easy way to stay focussed and imposing penalties that encourage you to stay on track and come into force if you deviate from the plan.