It’s an odd phrase isn’t it? Why would you save for a rainy day?

The biggest problem with this concept is that it’s nebulous. It’s the idea of saving (positive) but not for a specific purpose (negative).

How are we supposed to work towards and achieve our goal if we don’t actually have a goal? And it’s easy to dip into the pot if it’s not for anything specific as essentially there’s no downside – you're not missing out on anything.

As with everything in life our goals need to be clear. Then we can start thinking about how to achieve it and the various steps needed in order to do so. By breaking our goals down, they become more tangible and therefore achievable.

So, whether it’s saving for a holiday, a new bathroom, a baby, or to retire early, we need to ask ourselves a few questions. How much is it going to cost? When do I want to do this? How much can I realistically put towards this each month/week? Do I need to shift my expectations – either about when I can achieve this or how much I need?

By breaking it down, we create smaller, more achievable targets. Each time we’re tempted to dip in we know that it’s having a direct impact on us achieving our holiday/bathroom/baby/retirement which helps us to prioritise and ask ourselves whether we really need that new shirt/meal out/shoes instead.

Let’s shift our mindset.

Savings should be purposeful and for something that will give you pleasure – who enjoys a rainy day?