One of the hardest things about being at the stage that you can actually save a substantial amount of money is simply the fact that there are so many goals to save for, and it’s hard to determine which should take priority, and whether you should save for more than one goal at once.
Is it better to power through one savings goal until you’ve reached it, and then move on to the next?
Or should you save for more than one and reach them slower?
Here are a few questions to consider when looking at this question:
1) Which has priority? For instance, if you are saving up for a down payment on a house, as well as a new car, which one do you want or need the most? If you need the new car within the next year, because your existing mode of transportation is giving you troubles, but don’t want to buy for another five years, the car would take priority.
2) Which has the smaller savings amount? Humans are motivated by progress and small wins, so sometimes, for the pure ability to remain motivated to reach your goals, starting to save for the smaller goal first is going to provide you with the most benefit.
After all, it’s going to be easier to reach, which will motivate you to continue on saving.Movie Fifty Shades Darker (2017)
3) How much do you have to save vs. how much do you need to save to reach the goals? If you only have $300/month extra to put into a savings account, but your down payment goal requires thousands of dollars, it probably makes more sense to funnel all of your savings into one goal rather than split it up for $150 each goal per month. That way you won’t have to worry about extremely slow progress.