Top tips for saving towards your bucket list goals

What is your dream destination?  

Don't just dream - It's achievable if you set your mind to it. 

Top tips for saving towards your goals:

Firstly, get practical. Do the research and put a number to it - how much money will you need? Secondly, decide when you want to do it. How long do you have to save?

Now you have the two most important elements of any goal in hand: A clear definition of  how you will measure success (in this case, in rands) and a deadline for achieving your goal.

If you take these two vital bits of info to your financial planner, he'll be able to tell you which savings products are best suited for your particular deadline as well as how much you'll need to save every month.

For example:

If your dream trip to Bora Bora costs R45000 now and you want to go in three years time, it will probably cost about R55000 then. If you save about R1300 per month and increase that amount by 10% each year, you'll find yourself in paradise in three years time. That's a big "check" next to Bora Bora on your bucket list!

Keys to clever saving:

1. For goals you aim to achieve two years or less in the future, you are probably best off with cash investments. The amounts of money you have to save may influence your choice. In general, savings accounts and fixed deposits are accessible for smaller amounts and Money Market unit trusts are accessible for larger amounts.

2. For goals in the three to five year timeframe, you might look at income funds. These are unit trusts that are low risk and designed to give higher growth than cash, but need a little more time to do it.

3. For goals longer than five years in the future, your advisor will suggest investment funds based on the exact timeframe and whether or not you are willing to accept some risk in order to try and get higher returns.

4. Avoid products that tie you into a fixed term and have penalty charges if you have to stop saving early. Ask your advisor about LISPS.( That's not a speech impediment, it stands for  Linked Investment Service Providers)

Whatever your goal is, if it's important to you, it's worth planning for. Set your goal and your deadline and seek advice to help you put the best possible savings plan into action. before you know it, you'll be living your dreams!