Why Saving is About Focus, Not Luck

It’s the dream. You want that car, that house, that holiday, that retirement and… Ta-da! No need for savings goals, no need for a savings calculator - not even any reason to save with mynestegg. 

The money just drops into your lap courtesy of five numbers and a bonus ball, or a thousand-to-one shot at the racecourse, or the will of a great uncle who turned out to be archduke of a country you’ve never even heard of. 

Lady luck has shown her hand at the last minute and everything’s come up rosy. No effort required.

It’s the dream alright. Shame that you’re more likely to be hit by lightning twice than win the jackpot. 

Here in the waking world, a financially secure future is much more about being focused than striking it lucky. Savings goals are a much better bet than the lottery, and mynestegg is significantly more reliable than the horses. Here’s how to focus on saving and hit your own personal jackpot.

Step one - Focus on the end goal

Saving’s a good thing to do, sure. But so is learning a foreign language, getting fit, or all sorts of other things we’re told we should do. 

Saving for saving’s sake isn’t going to motivate you. But much like dropping a few pounds before a wedding, or brushing up on your French before a nice trip to Nice, having a goal in mind keeps you focused, on-track, and more likely to succeed. It’s all a matter of psychology. 

So ask yourself. What are you saving for? Have a clear idea in your mind. Write it on a post-it note and stick it to your laptop while you’re browsing your saving options. Something like:

“I want to be able to put a £20k deposit down on a house within five years.”

“I want to be able to go on a £3k cross-US road trip on my 30th birthday.”

“I want to retire comfortably at 55.”

By making it concrete, by setting a deadline, by having an endpoint in mind, your savings goal is going to be easier to work towards.

Step two - Track your progress

Ever used a fitness app? Or a language learning app? 

Notice how they love to send you little milestone reminders? “Well done, that’s 2lbs down!” or “Congratulations, you’ve done your 50th Spanish lesson in a row!”

It’s because of psychology again. We love those little rewards. They keep us focused. Nobody wakes up and discovers their great uncle in Ruritania has left them a perfect knowledge of Spanish verbs, or wins a beach body on the lottery. They do it through focus. And those little milestones are key to keeping you focused.

With saving, you need to set your own milestones. 

Let’s say you’re saving that £10k deposit in a mynestegg ISA and head over to the ISA savings calculator. 

Straight away, you’ll see that to save that in five years, you’ll need to put away around £150 per month. So what milestones will you want to celebrate?

How about the first £500 saved? The first £1,000? Halfway to your goal?

By using the calculator, you can work out when you’re likely to hit these goals. So set yourself little pop-up reminders on your phone to tell yourself well done. Or let us do it - our app sends out push notifications when you pass savings milestones. It’ll keep you focused. It’ll put a smile on your face.

It’ll help you see your goal moving ever closer.

Step three - Make saving a habit

Whether you’re using that ISA calculator or the mynestegg pension saving calculator, you’ll notice something. The more you save each month, the more your savings grow.

That’s obvious, when you think about it for a second. Even with all that interest helping you out, and stocks and shares doing their thing, putting more money in on a regular basis moves you closer to your goal.

So you have to focus on making savings a habit. Commit to putting a certain amount aside each month. And much like you’d turn down a second helping at Sunday lunch when you’re on a diet, you might need to turn down an expense here and there to make sure you keep up your savings habit.

But don’t think of it as missing out. Think of it as moving closer and closer to your goal. You don’t need luck, you just need to stay focused.

By making saving a habit, you’re more likely to keep doing it.

Set your goal. See your goal. Stick to your goal.

Make it all about focus, and you’ll make your own luck. No lottery ticket required.

We’re always looking to make saving simpler. To learn more about how to set goals, save for the future, or choose the right pension or ISA, visit the mynestegg Knowledge Hub.