Setting goals and making plans

Saving is much easier when you know why you're saving. A goal gives your money a job to do.

What's a money goal?

A money goal is something you want, written down with a price and a date. For example:

• I want to buy a remote-controlled car that costs ₹2,000 by my next birthday.
• I want to save ₹500 for a school trip in 3 months.

Break it into bite-sized steps

₹2,000 sounds like a lot. But if your birthday is 10 months away, that's only ₹200 a month. And ₹200 a month is just about ₹7 a day — easy to save by spending a little less on snacks.

The 3-step plan

1. Pick the goal. What do you want and how much does it cost?
2. Pick the deadline. When do you want it by?
3. Divide. Cost ÷ months = how much to save each month.

Don't forget your future-self

Some of your savings should not have a goal at all — that's your safety pile. It's for surprise things: a broken toy, a friend's birthday gift, a lost school item. Always keep a little bit aside, just in case.