Is Your Savings Strategy Still Right for You?
Saving money is one of the best financial habits you can develop.
But while the habit should remain consistent, the purpose of your savings should change as your life changes.
The goals you have in your twenties are unlikely to be the same in your forties or fifties.
As your income grows, your responsibilities increase and your priorities evolve, your savings strategy should evolve too.
Reviewing your savings regularly helps ensure your money is working towards the things that matter most to you.
Two Savers. Two Different Approaches.
Imagine two people who both save €300 per month.
The first continues putting the same amount into a standard savings account for the next twenty years.
The second reviews their finances every few years.
As their salary increases, they gradually increase their monthly savings, build an emergency fund, begin investing for long-term growth and increase their pension contributions.
Both have developed the habit of saving.
However, the second person’s money is working harder because their financial plan has evolved alongside their life.
Saving Is About More Than Putting Money Aside
Many people set up a monthly savings plan and simply leave it running for years.
While consistency is important, it’s equally important to ask whether you’re still saving for the right reasons.
Over time, your priorities may change from saving for:
- An emergency fund.
- A deposit for your first home.
- Home improvements.
- Your children’s future.
- Holidays or major purchases.
- Retirement and long-term financial security.
As your goals change, the way you save should change too.
Your Financial Plan Should Grow With You
Your financial plan shouldn’t remain the same forever.
As your circumstances change, so should the purpose of your savings.
Regular reviews can help ensure your money continues working towards your current priorities rather than goals you’ve already achieved.
Are You Saving in the Right Place?
Not every euro should necessarily be kept in a savings account.
Money you’ll need in the short term may be best kept in cash, while longer-term goals could benefit from investing, allowing your money the opportunity to grow over time.
For example:
| Goal | Typical Timeframe | Possible Approach |
|---|---|---|
| Short-term goals | Up to 3 years | Cash savings |
| Medium-term goals | 3–7 years | A combination of savings and investments |
| Long-term goals | 7 years or more | Investments and pension planning |
Matching your savings strategy to your timeframe can be just as important as deciding how much to save.
When Was the Last Time You Reviewed Your Savings?
A simple annual review can make a significant difference.
Ask yourself:
- Am I saving enough?
- Have my financial goals changed?
- Could I increase my monthly savings?
- Is too much money sitting in cash?
- Am I making the most of my pension and investments?
Small changes made today can have a meaningful impact over the years ahead.
How Oaktree Financial Services Can Help
Every person’s financial priorities are different.
That’s why every financial plan should be tailored to the individual.
At Oaktree Financial Services, we help clients build financial plans that adapt as life changes.
We can help you:
- Review your current savings.
- Build an emergency fund.
- Decide how much cash you should keep readily available.
- Explore whether investing is appropriate for your longer-term goals.
- Ensure your savings, investments and pensions work together as part of one financial plan.
Our advice is tailored to your individual circumstances, helping you make informed financial decisions with confidence at every stage of life.
Adrian Godwin is a Senior Financial Consultant and the co-founder and managing director of Oaktree Financial Services. With a background in accounting and tax advising, Adrian specialises in estate planning and wealth management.Adrian offers clients reassurance through best practice solutions. His unique skill set and qualifications enable clients to develop comprehensive life plans that align with their goals.
