A savings plan for one specific goal

“Save more” is not a plan. A goal with a price and a date is. AI can do the arithmetic and, more usefully, suggest where the money could realistically come from — small changes you would hardly notice rather than heroic sacrifices.

1. 1

   Name the goal and the price

   Be specific: “a week in Lisbon for two, about this much”.

2. 2

   Pick a date

   A deadline turns the total into a weekly number.

Why one goal works better than “saving more”

“I should save more” is a wish. “I need 1,800 for a used car by next June” is a plan waiting to be written. A specific goal has a number and a date, which means you can divide one by the other and know exactly what each week requires. It also gives you a reason to say no to small things, which a vague intention never does.

The other reason to save for one thing at a time is that you can see it grow. A separate pot with a name on it, filling steadily, is far more motivating than a general balance that goes up and down.

The three facts you need

• The price: what the goal really costs, including the extras people forget. A holiday is flights, accommodation, food, transport, insurance and spending money.
• The date: when you need the money. Be honest about whether the date is fixed or flexible.
• Your capacity: what you can put aside each week or month without having to take it back out.

With those three, the plan is arithmetic. If the arithmetic does not work, one of the three has to change, and it is better to learn that today than a month before the deadline.