Goal Based Planning Improves Saving
According to the 8th annual America Saves study, goal-based planning significantly helps people save money. The survey of 1,009 adults found that those with a specific plan to reach their personal goals were far more likely to make good or excellent progress towards their needs, spend less income and save the difference, have emergency savings, and save enough for retirement. They are also more likely to name higher goals.
“Making a savings plan focuses one’s attention on how one spends and saves their income. Those with a savings plan tend to be more careful spending money, less willing to borrow unwisely, and more likely to save conscientiously.”
Generally, Americans did better saving money over this last year. The amount of people saving at least 5 percent of their income increased from 47 percent to 52 percent, and people who feel they are making either good or excellent savings progress grew from 35 percent to 40 percent.
See Ryan W. Neal, Goal-Based Planning Improves Saving, Survey Finds, Wealth Management, Feb. 23, 2015.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.