Are you saving for something specific right now? Do you have any upcoming vacation plans or are you saving to buy a newer vehicle within the next couple of years? Whatever your savings goals might be, there is a really great tool called the Basic Savings Calculator that can help you determine how attainable your goals are.
Simply enter your information into the fields and you will get a basic idea as to how long it will take you to achieve your specific goal and how much you need to save. Every once in a while, use this calculator to do a quick “check up” to see how you are doing.
Imagine you are saving for a two -week vacation in Hawaii in 2 years. You estimate that it will cost you $6000. You know you have 2 years to save. Assuming a savings interest rate of 2%, if you set aside $245 every month for the next 2 years, you will have achieved your goal.
Play around with the calculator, trying different dollar amounts to see how far your savings will take you. If you cannot afford to save as much as is required within your desired timeframe, you may have to extend your timeframe in order to set a more realistic goal for yourself. By making realistic and attainable goals you will set yourself up for success and you will not be disappointed.
3 Comments
that is a lot of money to save $245/month. i would not like to blow 6000 dollars in 2 weeks and have to save it for 2 years.
Interesting idea. I haven’t been able to save $245 a month or get close to it, but I am saving between $40 and $50 a month and that was easily accomplished when I switched over to a prepaid cell phone carrier from a high (too high) priced contract service. Honestly, prepaid isn’t for everyone and it take a lot of effort and time to search for a company and the best deal that fits your usage – I mean don’t go looking for an IPhone here. Some might consider it a downgrade to go with a Walmart sold product, but I did with their Straight Talk prepaid line and I think savings are worth then the name. Each month, versus my old bill, I’ve been able to save about $45 over my old bill – incidentally that $45 is all I now pay with ST for the unlimited service I couldn’t afford with ATT. I’ve got $500 from last year to this year.