How To Set Savings Goals and Track Your Progress
Last Updated: March 20, 2025
Saving money can seem hard, but having a goal and a plan can make it easier. Whether you want to buy something big, like a car, or prepare for the future, clear savings goals help you stay on track. By knowing how much to save and how to measure your progress, you can reach your financial dreams.
In 2024, people in the United States saved about 4.4% of what they earned.[1] So, for every $100 earned, they saved about $4.40. This was less than the year before, which might mean saving money got harder for some families. It shows why having a plan for saving is so important.
Here, you'll learn about savings goals, how they work, the types you might set, and the best ways to track your progress. Then, you'll discover tools to help you succeed.
What Are Savings Goals?
Savings goals are specific financial targets. They give you something to aim for and keep you motivated. Instead of just saving “extra money,” you save for a purpose, like an emergency fund, a family trip, or a new home.
Clear goals help you:
- Stay focused on what you need.
- Avoid spending money on things you don’t need.
- Track your progress toward a reward.
To make your money work for you, check out Centier’s savings products.
Why are Savings Goals Important?
Savings account goals are essential because they help provide direction, improve financial discipline, and help you track savings progress. They also boost motivation and confidence and can prepare you for emergencies.
Provides Direction
When you have your eye on a target, you know where to aim. Savings goals are a financial target that you can look toward. When you make financial decisions with a goal in mind, you’re more likely to stay on track.
Improves Financial Discipline
Setting savings goals helps you create healthy money habits. You begin to budget more carefully. As you learn how to save money effectively, you can start to avoid unnecessary spending. Over time, sticking to a goal teaches consistency. This can make financial planning feel like a natural part of your routine.
Helps Track Progress
Savings goals let you measure success over time. You can see how much closer you get with every deposit. This makes progress tangible. Tracking that growth keeps you engaged and encourages steady, ongoing effort toward your target.
Boosts Motivation and Confidence
Each milestone reached builds momentum. When you hit a small goal, you gain confidence to aim higher. That sense of accomplishment can motivate you to save more. It can also help reinforce the idea that your financial decisions are paying off.
Helps Prepare You for Emergencies
Savings goal planning gives you a better advantage when unexpected expenses arise. Whether it’s a job loss or a medical bill, having money set aside helps to lessen the stress and debt. It allows you to focus on solutions instead of scrambling for cash.
How Do Savings Goals Work?
Savings goals break down big dreams into smaller, manageable steps. For example, if you need $1,200 for a new computer in a year, you can save $100 a month.
Here’s how they work:
- Decide what you’re saving for.
- Pick a deadline for when you’ll need the money.
- Divide the total amount by the time you have to save.
- Set aside that amount regularly.
By staying consistent, you can achieve big goals over time.
To figure out how much to save each month, use Centier’s financial calculators.
Types of Savings Goals
There are three different types of savings goals that you may want to set: short, medium, and long-term. Find out what they are and see examples of each type.
1. Short-Term Goals
Short-term savings goals are for things you want or need in the next year.
These could include:
Building a $500 emergency fund.
Saving for holiday gifts or decorations.
Taking a weekend road trip.
2. Medium-Term Goals
Medium-term goals take one to five years to reach.
These might include:
Buying a car.
Saving for a big family vacation.
Paying for a wedding or a special anniversary.
3. Long-Term Goals
Long-term goals often involve big life plans that take five years or more.
Examples include:
Saving for retirement.
Putting a down payment on a house.
Funding your child’s college education.
Each goal type has its own timeline, but all need a plan and regular saving.
To grow your savings for the long term, learn about CDs and IRAs.
How To Set Savings Goals
To create an effective savings plan, follow these steps to make your goals clear, practical, and achievable.
Use SMART Goals as Your Framework
The SMART method helps you make sure your goals are:
Specific.
Measurable.
Achievable.
Relevant.
Time-bound.
First, to make it specific, clearly define what you’re saving for. Instead of “Save for a vacation,” aim for “Save $2,000 for a trip to Florida by June 2025.” And, to make it measurable, keep track of your progress in dollars or percentages.
Next, to make it achievable, set a goal that fits your income and budget. If saving $500 per month isn’t possible, adjust your timeline or target. And, make sure your goal matters to you to make it relevant. Saving for something meaningful keeps you motivated.
Finally, set a deadline to create urgency and track progress effectively.
You might also like: 7 Examples of SMART Objectives for Students
Break Down the Numbers
Once you’ve defined your SMART goal, calculate how much you need to save each month. For example, a $6,000 goal over three years means you need to save $167 per month.
Breaking goals into smaller monthly or weekly targets makes them easier to manage and track.
You might also like: The Best Way to Track Spending
Automate and Simplify
When you automate your savings, it can help you stick to your plan without thinking about it. Set up automatic transfers to your savings account after each paycheck.
You might also like: Everything You Need to Know About Automatic Payments
How To Track Your Savings Progress
Tracking your savings shows how close you are to your goal. It also helps you stay motivated.
Here are some easy ways to track your progress:
Use a budget.
Try savings apps and tools.
Celebrate milestones.
Adjust as needed.
Tracking your progress is essential for achieving your savings goals. Start with a budget to see how much money is coming in and going out, which helps you find extra funds to save.
Use tools like Centier’s online banking to easily monitor multiple goals in one place. Breaking your goal into smaller milestones also keeps you motivated. For example, if you’re saving $1,000, celebrate every $250 saved to stay on track.
If unexpected expenses or income changes occur, adjust your savings plan. Even small, steady progress is better than none. The key is to keep moving forward toward your goal.
Save for a Bright Financial Future With Centier by Your Side
Saving money is all about having a plan and sticking to it. When you set clear savings goals, break them into smaller steps, and track your progress, you’ll feel more in control of your finances. No matter your goal — big or small — stay consistent to build a bright financial future.
Start today by choosing a goal and opening a savings account that works for you. Your future self will thank you!
To take the first step on the journey to reach your goals, open a Centier high interest savings account.
Frequently Asked Questions
How can I stay motivated to reach my savings goals?
Make saving fun and simple. Break your goals for saving into small steps. Watch your progress grow each week or month. You can use a chart, app, or journal to track it. Set rewards for reaching milestones. Even small wins help you stay focused and excited.
What are three factors to consider in creating goals for savings?
Think about what you want, how much it costs, and how long it will take to save.
In other words, look at:
- Purpose
- Amount
- Timeline
Write your goals down so you can see them and stay on track. Consider keeping your money in a savings account to grow your funds.
Can I automate deposits into my savings account?
Yes. You can set up automatic transfers from checking to savings. This means money moves into your savings without you needing to remember. It helps you save regularly and builds good habits over time. Be sure to remember that money transferred out, so you do not overdraw your account.
How much interest can I earn in a savings account?
It depends on the account’s interest rate, how much you save, and how long your money stays in the account. A small balance may earn just a few dollars. Larger balances can earn tens, hundreds, or even thousands over time. For example, $1,000 at a 4% Annual Percentage Yield (APY) rate may earn $40 in the first year as long as you keep the balance in there.
What’s the minimum balance needed to open a savings account?
Each bank and each account is different. Some let you start with $0 or $10. Others may require a $100 minimum balance. Ask your bank before you open an account so you know the rules.
Source:
[1] https://www.statista.com/statistics/246268/personal-savings-rate-in-the-united-states-by-month/