I must admit that I have never saved with a real goal; on the other hand, I have always had within me the imperative of having to save something.
This is perhaps because we Italians have the concept of savings inherent in us and therefore generally have greater wealth, we save more and borrow less. From an early age, we are taught to save and babies already have their assets invested in safe assets.
My approach has led me up to 30 years to have a personal heritage created by me practically nil and to build something only in recent years. Partly because my income has grown considerably only now, partly because in the last two years I have instead started saving and addressing my choices are given buying a new home and my approach to saving has changed and it becomes more mature. I omit here the epilogue of the story because in the end I have not found a house and therefore I will rent at least for a while, but I will tell you some reflections (even a little trivial) that I have gained on the savings addressed.
- Saving with a goal is much more effective and allows you to increase the share you allocate to saving, when we do not have a goal it is easier to give in to temptation, luxury spending, and let yourself be distracted.
- Saving with a goal means reflecting on all the roads you can take to achieve it and also gives you ideas on how to increase the savings share, the revenue, or how, vice versa, to reduce the goal (in my case, reduce the purchase price or limit the additional costs).
- Saving with an objective also makes it possible to combine savings with a financial instrument that is aligned in terms of duration and risk of return.
- Saving with a goal means being satisfied with the achievement of the goal. In fact, in the end, not buying a house made me slow down my savings plan a bit.
If the considerations are a bit obvious, it is not at all obvious what I decided to do after this experience because it radically changes my way of saving. I have decided to use my various accounts for my goals. No longer a single anonymous account or deposit accounts with a little money deposited, but real containers of ideas and projects. The home account will remain the richest and the one I will want to feed because now this is my dream, then there is the “study” account to finance my son’s studies, and then an “escape” account to finance the annual holidays. All these accounts will be fed with monthly payments and if I have new goals I will match new accounts.