Are you likely to shrug at the idea of saving for a rainy day? If you have a hard time setting aside funds for saving and investing, it might be because you have no exciting goals to stimulate the savings instinct within you.

So, why not add something exciting to the savings objectives mix like travelling to Paris in the summer, visiting India to view the Taj Mahal or, still yet, going to Barbados for Crop Over?

Along with the bread-and-butter goals of saving for a home and its comforts, other long-held desires can be legitimately added to your plans for a happy future.

Monique Todd, director of wealth-management marketing at Scotiabank, points out that how much you need to save is dependant on your goals.

Planning for basic goals

"Sure you can have as a goal, a tour of Europe, but it is important that you are also planning for your basic goals: retirement, further education and buying a home.

Anya Schnoor, senior vice-president for wealth management at Scotiabank and chief executive officer for Scotia DBG Investments, adds that a successful savings and investment strategy begins with setting goals and planning.

Whatever your dreams are, you need to "set yourself some milestones, pencilling out your short-term and long-term objectives and selecting the goals which are most important to you".

Subsidiary strategy

Your next step, Schnoor advises, will be to create a plan. This plan may involve a subsidiary strategy for increasing your employment income and cutting unnecessary expenses. It should also include retirement planning, home purchase and education strategies.

Budgeting will be important in this planning process as well. Begin by determining your monthly income and expenses, identifying necessary and discretionary expenses.

Some rules to live by, cautions Schnoor, include the mantra to save a basic 10 per cent of your salary. Another rule is that your housing costs should be easily within your salary range.

Still another is that you should avoid purchasing motor cars which are expensive to maintain and provide inefficient gas consumption.

In general, the implementation of your savings and investment plan will require a disciplined approach. Once you have set your goals and the strategy you need to reach them, then stick with the plan, reviewing it periodically to ensure that goals are on track. If a goal changes, then revisit and revise the plan. You will need to do this if market or personal conditions change.

Stay as liquid as possible

Schnoor advises that individuals stay as liquid as possible by investing in shorter-term and secure instruments. They should also get rid of high-interest debt, such as credit cards and unsecured loans, and trim unnecessary expenses, such as fast food, alcohol and cigarettes.

According to Monique Todd, if after you do your budget and work out your financial plan, you realise that you have enough disposable income to meet your day-to-day needs, your basic goals and making that trip to Europe, then go ahead!

The important thing, she adds, is to be realistic about what you want, ensure you cover both your short-term and long-term goals in your financial plan and be committed to the monthly amount that you need to invest consistently to meet these goals.

Saving and investing with future goals in mind can be a daunting task. Get a financial adviser to guide you and, remember, if you have not yet started, there is no time like now to begin.

avia.ustanny@gleanerjm.com