That holiday of a lifetime. A deposit for a flat. Your dream wedding. There’s so many things in life that we often want to save for, and sometimes it’s hard to prioritise. So, if you can’t choose, surely it makes sense to save for as many things as possible? Well, not quite.
Research done by Professors Dilip Soman and Professor Min Zhao found that by spreading yourself too thinly on the savings front, your goals will seldom be realised. According to Professor Zhao: ‘If you only have one goal, it puts you in a more action-orientated mindset and helps you save more.’
But how can you choose what to prioritise? Surely the new iPad and that Mulberry handbag would both bring equal happiness to your life?
Prof Zhao suggests that rather than seeing them as being two individual goals, culminate them into a single piggy bank, such as ‘achieving financial independence’, or perhaps even just a ‘feeling good fund’. This way, you still have one goal, even though it may cover several bases – leaving you to finally buy whatever’s on your wish list.