If Money Is Tight, You Should Focus Only on One Savings Goal

You may not have the luxury of spreading yourself thin

Photo by Harry Cunningham on Unsplash

One goal pursued obsessively is better than five goals with weak commitment.

Especially if money is tight right now.

Read to the end of this article to learn:

• How people struggling to make ends meet can save money by focusing on a single savings goal.
• A framing technique that higher-income people can use to achieve multiple savings goals at the same time.

When it comes to savings goals, “the fewer, the better”

When you read personal finance articles, you get bombarded with advice on the importance of building a savings plan for all your financial priorities, from retirement planning to a 30-day emergency fund.

But what if you have $400 left each month after paying your basic living expenses?

Is it realistic you will avoid all discretionary spending and split that $400 up to achieve five different savings goals?

OR

Would you be better off focusing your limited resources on one savings goal?