Aspirations
5-year goal? Here's how to save smartly
Saving for your goals doesn’t have to be tough. Here’s how to save smartly with your vibe and budget intact.
Key insights
Goals don’t fund themselves. Set detailed, time-bound goals with numbers.
Use tools like SIPs and RDs for wealth creation.
Make saving intentional with joy. Talk money and normalise growth.
Know where your money goes.
So, you’re planning to accomplish your 5-year financial goals?
Maybe it’s buying a bike, watching a game at a legendary stadium, starting your own business, or just finally saying “goodbye” to sharing a room with your sibling who talks in their sleep.
Whatever your dream is, here’s a truth: your 5-year financial goals won’t fund themselves.
Stings, doesn’t it?
Relax. Saving money for your goals doesn’t mean turning into that friend who brings homemade snacks to a movie date. (Unless you are that friend.)
Let’s find out how to save money for 5 years and hit that goal with your sanity intact.
Step 1: Define your 5-year financial goals
Why? Well, because 5-year financial goals are more than just an inspired mood board. It needs:
- A number (₹10 lakhs for your own business)
- A deadline (5 years i.e. 60 months)
- A reason (the “why” will keep you going)
Pro tip: The more detailed your 5-year financial goals, the easier it is to work with a plan.
Step 3: Reverse-engineer the math
Let’s say one of your 5-year financial goals is to save ₹10 lakhs.
That’s:
- ₹2 lakhs per year
- ₹16,666 per month
- Or ₹555 per day
To accomplish this, you can use a budgeting app to keep track of your spending activity. Seeing yourself an inch closer to your goal is way more satisfying than just “not spending.”
Step 4: Automate
Here’s the trick about 5-year financial goals: ALWAYS pay yourself first.
The moment you hear that sweet ka-ching, auto-sweep your savings amount into a separate goal-based Savings Account.
Out of sight = out of the temptation zone.
How to save money for 5 years?
- High-interest Savings Account
- Recurring Deposits
- SIP in Mutual Funds
- Digital Gold
Pro tip: Opt for low to moderate-risk investments to fund your 5-year financial goals.
Step 5: Mindset > expenses
What does money mean to you? Answer that and you’ve pretty much solved your problem of saving for your 5-year financial goals. Saving smartly = changing how you think about money.
Don’t know how? Try this:
- The overnight rule: Wait a day before buying unnecessary items.
- “Fun fund” limit: Pick one splurge monthly and budget for it. Guilt-free!
- Cash challenge: Withdraw for your weekend and spend in cash. When it’s gone, it’s gone.
Pro tip: Don’t sacrifice fun for your 5-year financial goals. Just be intentional with it.
Spill the financial tea
Have 5-year financial goals? Tell your friends, family, and colleagues.
They might:
- Help you be more accountable
- Stop dragging you to plans that disturb your budget
- Share saving hacks of their own
Money talk = financial growth.
5 years, 1 goal, 0 excuses
Life with 5-year financial goals is hard work. So, let’s be real - every dream is valid and so is the discipline that comes with it.
Planning your life and money doesn't just mean you can have fun later. It means you get a front-row seat to the good life without the panic.
Start small. Stay consistent. Skip the excuses.
And in five years? Watch your “someday” become “done.”
Disclaimer: This article is intended solely for informational purposes. The views expressed in this article are personal. Axis Bank and/or the author shall not be liable for any direct or indirect loss or liability incurred by the reader arising from reliance on the content herein. Readers are advised to consult a qualified financial advisor before making any financial decisions. Axis Bank does not endorse or guarantee the accuracy of any third-party content or links included in this article.
By Axis Bank Learning Hub Team
