How to set a clear and realistic savings goal ?

Tell me, what truly motivates you to save money? Is it the sweet dream of owning your own home, the desire for a beautiful getaway, or perhaps the caution of an emergency fund for the rainy days?

Maybe, like me, you’re looking to build a base capital for investing?

In the last article, I invited you to take a moment and reflect on your motivations (CROFT 35% – From bravery to savings : our financial future).

). As in any well-run business, organization is essential. But first, a clear and structured goal is the key to success.

So, sit comfortably with a cup of tea, a pencil, and a sheet of paper, and let’s go through it together. With a little method and a good example, you’ll see that everything becomes easier than you think.

Defining a savings goal with the SMART method

The SMART method is a tool that turns a vague desire to save into a precise, achievable goal.

A good savings goal must be :

• Specific : clearly define your aim. E.g., "I want to save €5,000 in 12 months for a trip."
• Measurable : how will you track progress? E.g., "I will save €420 per month."
• Achievable : set a goal that aligns with your income and expenses.
• Realistic : ensure the goal fits your lifestyle.
• Time-bound : set a clear deadline. E.g., 12 months.

📌 SMART goal example : "In 12 months, I want to save €5,000 by putting aside €420 each month in a dedicated savings account."

✍️ Grab your pencils! Write down your goal and share it in the comments! 😊

Breaking down the goal with the OKR method (Objectives and Key Results)

Turn your goal into concrete actions. For example ➡ main goal = save €5,000 in a year.

📌 Key Results :

• Set up an automatic transfer of €420 per month.
• Reduce non-essential spending by 20%.
• Increase my income by €200 per month through a side job or selling unused items.

Write down your concrete actions to create a real action plan , not just a wish.

Visualizing your goal

Visualization is a powerful technique used by successful athletes and entrepreneurs. It makes the goal more motivating.

How to apply it?

• Choose a medium for your vision board (physical or digital).
• Add images representing your goal: a tropical beach if you’re saving for a trip, a house if you’re saving for a home purchase.
• Write motivating quotes and track your progress visually.

💡 This approach will remind you daily why you’re making these efforts.

Progressing gradually with the Kaizen method

If saving €420 per month seems difficult at first, start with small steps :

• 📅 Month 1: Save €100.
• 📅 Months 2-3: Increase to €200, then gradually raise it.

As you reduce unnecessary spending, you’ll be able to grow your savings without pressure.

💡 The idea is to think ahead for the coming year and distribute amounts based on expected income and expenses :

• Reduce the amount when you anticipate exceptional costs.
• Increase it when you receive bonuses.

Anticipating obstacles with the WOOP method

The WOOP method (Wish, Outcome, Obstacle, Plan) is perfect for anticipating challenges that could hinder your savings.

📝 Application to your savings :

• W : wish : "I want to save €5,000 in a year."
• O : outcome : "With this savings, I can go on a stress-free vacation."
• O : obstacle : "I’m often tempted to buy unnecessary items online."
• P : plan : "I’ll use the 48-hour rule for impulsive purchases and automate my savings so I won’t touch it."

💡 Whenever you encounter an obstacle, add it to your list and note your solution to overcome it.

Defining implementation intentions

Set clear rules to give your goal consistency. These intentions will help you take action when facing specific situations.

📌 Examples of implementation intentions :

• "If I receive a bonus, I will immediately save 50% of it."
• "If I want to buy a non-essential item, I’ll wait 48 hours before deciding."
• "If my bank account drops below a certain threshold, I will stop all non-essential spending for the month."

💡 Think of rules that will prevent you from making impulsive decisions and help you stay disciplined.

Applying the 10/10/10 rule for better decisions

This rule helps you think through the consequences of your financial decisions.

Example: You’re hesitating between buying an item for €100 or saving it instead.

• In 🔟 minutes : vous ressentirez de la satisfaction immédiate si vous l’achetez.
• In 🔟 months : vous aurez peut-être oublié cet achat, mais l’épargne aurait déjà grandi.
• In 🔟 years : cette habitude d’épargne pourrait vous avoir aidé à constituer un fonds de sécurité ou à financer un grand projet.

💡 With this rule you think long-term instead of giving in to instant gratification.

Automating and tracking your progress with the GTD method

The GTD method (Getting Things Done) emphasizes the importance of organization and automation.

• Open a dedicated savings account to avoid temptation.
• Set up an automatic monthly transfer to this account.
• Use a budgeting app to track your progress in real time.
• Set a monthly reminder to adjust your budget if necessary.

By reducing mental load, automation removes temptations and allows you to reach your goal effortlessly.

Conclusion : your 6-step action plan

1️⃣ Define a SMART goal and use the OKR method to break it down.
2️⃣ Visualize. Put your goal in images.
3️⃣ Set rules to frame your goal.
4️⃣ Anticipate obstacles with the WOOP method and implementation intentions.
5️⃣ Make better financial decisions with the 10/10/10 rule.
6️⃣ Automate your savings and track your progress each month.

The countdown begins ! 🚀

As you’ve understood, my goal is twofold.

Building this savings is the reward that helps us focus in the right direction.

As announced, there is much more to explore in this journey, as the goal of CROFT 35% is to build a foundational capital for investing and to achieve a deep understanding of personal finance management.

In the next article, the pieces of the puzzle will start to fit together.

Be ready!