Savings Goal Calculator: How Much Should I Save Each Month?
When you’re serious about reaching financial goals, you set targets that are SMART — specific, measurable, attainable, relevant, and time-bound. The savings goal calculator can help you:
- Break your larger goal into precise amounts that fit your budget
- Refine your goal to make sure it is attainable
- Determine when you will reach your goal
- Compare current interest rates
Savings Goal Calculator Instructions
There are four input boxes in the savings goal calculator. Simply enter your information and hit Tab to jump to the next field. Here’s what to enter:
Your Savings Goal
Enter the amount you want to save. Don’t bother with dollar signs or commas – the calculator will take care of those automatically.
Estimated Time to Reach Your Goal
For a short-term goal you expect to reach in less than a year, tab through the Years input box and enter a number between one and 12 in the Months input box. For long-term goals, you need to enter both years and months because the Months field only accepts figures from zero to 12. (Example: A year can be entered as 1 year and zero months or zero years and 12 months. But for a time period of one and a half years, you would enter 1 in the Years input box and 6 in the Months input box. The calculator does not accept the equivalent of 18 months.)
Your Opening Deposit
Enter the amount you currently have available as an initial balance for this savings goal. Enter zero if you don’t have any funds saved yet.
Estimated Savings Interest Rate (APY)
By default, this input box is left blank so you can enter an interest rate — the interest rate offered by your current bank, for example.
However, when you enter an opening deposit amount above, the calculator immediately checks our featured banks for their best savings account rate, so you may see that this section offers other alternatives.
If you want the calculator to show and use a featured bank’s rate in its calculation, click on one of the bank logos immediately below. This will automatically enter that bank’s current rate into this field so you can compare it against other interest rates.
INSIGHTS
Interest rates change too, so plan to use the savings goal calculator frequently to see if a better interest rate is available that could help you reach your goal faster.
Your Results
When you click on the Calculate button, your results display immediately below. The column on the left shows how much you need to save every month in order to meet your goal. The column on the right breaks that amount down into daily and weekly savings-goal figures.
You can experiment with the calculator to see how different parameters may help you make attainable savings goals. The calculator retains your initial savings goal, target date, opening deposit amount, and interest rate projections. Simply change any of these amounts and click Recalculate for updated results.
Conditions change, so experiment with the savings goal calculator to see how different parameters might affect your results. Resetting your target date, for example, could help you understand when your savings goal becomes feasible for your budget.
How to Save Money Fast
Saving money fast can be a challenging but rewarding endeavor.
Whether you’re saving for an emergency fund, a specific goal, or just want to improve your financial situation, here are some steps to help you save money quickly:
Set Clear Goals
Determine the specific reason you want to save money. Having clear goals will motivate you to stay on track. Whether it’s for a vacation, paying off debt, or building an emergency fund, knowing your target is essential.
Create a Budget
Make a detailed budget to track your income and expenses. List all your monthly bills, and be honest about your spending habits. Identify areas where you can cut back and allocate those savings toward your goal.
Cut Unnecessary Expenses
Identify non-essential expenses and cut back on them. This might include dining out less, canceling unused subscriptions, or finding more cost-effective alternatives to your current habits.
Automate Savings
Set up an automatic transfer from your checking account to a separate savings account each time you receive your paycheck. This ensures you save a portion of your income before you have a chance to spend it.
Find Additional Income
Look for opportunities to increase your income, such as a part-time job, freelance work, or selling unused items online. The extra income can boost your savings significantly.
Minimize Debt
If you have high-interest debt, such as credit card balances, focus on paying it down as quickly as possible. High-interest debt can eat into your savings potential.
Use Cash Instead of Cards
Consider using cash for daily expenses, as it can make you more aware of your spending. When you physically see money leaving your wallet, you may be more cautious about unnecessary purchases.
Negotiate Bills
Contact your service providers (e.g., cable, internet, insurance) to negotiate better rates or discounts. Reducing these bills can free up money for your savings goals.
Embrace Frugality
Embrace a more frugal lifestyle by finding cost-effective ways to meet your needs. Look for sales, buy generic brands, and consider DIY solutions for everyday items.
Delay Gratification
Practice delayed gratification by postponing non-urgent purchases. Instead of buying something immediately, give yourself a cooling-off period to reconsider if it’s truly necessary.
Build an Emergency Fund
Prioritize building an emergency fund of at least three to six months’ worth of living expenses. This fund will prevent you from dipping into your savings in case of unexpected expenses.
Monitor Your Progress
Regularly review your budget and savings progress to make sure you’re staying on track. Adjust your goals and strategies as needed.
Stay Disciplined
Saving money quickly requires discipline and determination. It may be challenging at times, but remind yourself of your goals and the long-term financial security you’re working toward.
Remember that saving money fast often involves making sacrifices and prioritizing your financial well-being. It’s essential to strike a balance between your short-term and long-term financial goals. Be patient, stay focused, and keep your eye on the prize as you work towards your savings objectives.
