Q: We want to start saving for a new car. Do you have any suggestions about how to keep motivated?
A: Congratulations. By knowing what you are saving up for, you are already more likely to hit your target.
Studies show that those who set a savings goal save faster than those who don’t, so making sure that you are absolutely clear about how much money you will need and by when will help motivate you.
So don’t be afraid to undertake your car research now. Work out what type of car you would like and how much it may cost. Once you have a figure in mind, you can work out (realistically) how much you could save each month towards your goal by analysing your monthly incomings and outgoings.
Depending on the result, you can see how long it may be before you have enough money to buy the car. Plot that date on your calendar – seeing it in black and white will help to keep you on task.
One of the best ways to ensure that your savings aren’t diverted for other projects is to open a separate account for a big purchase. Many banks will allow you to name that account after the item you are saving for, which could also help focus your mind.
To ensure that you hit your target, you could set up a standing order from your current account into the savings account each month, which means that you would save without even thinking about it.
Some accounts – called regular savers – offer higher interest rates in return for regular monthly deposits, so you may find a high interest rate
to help achieve your goal.*
*Opinions expressed here do not necessarily reflect the views of Sainsbury’s Bank.
Sainsbury’s Bank provides a range of services, including banking products, car insurance, home insurance, life insurance, pet insurance, travel insurance, travel money and savings.
We combine the shopping experience and banking by offering customers great products at fair prices, while consistently rewarding them with extra Nectar card points for choosing Sainsbury’s for their finance and shopping needs. Nectar points can be used towards travel, treats, family days out and shopping.
