The Backwards Approach - A Savings Tip That Actually Works
Hey there, it’s Mackenzie from CC&Associates!
If you need support budgeting or saving for your short or long term goals, reach out, and we can point you in the right direction.
Let’s talk about saving—because, honestly, knowing how much to save and where to put it can feel like a guessing game.
Do you save a little here, a little there? Do you throw it into investments? Do you stuff it under your mattress? (Please don’t do that.)
Personally, I like to work backwards when I have a big goal.
Right now, I have two major things to save for:
a destination wedding and
a trip to Europe.
Here’s how I break it down:
✈️ Flights: $2,500 ($1,250 each trip)
🏡 Hotels & Airbnbs: $3,000
🍕 Extras (food, activities, spontaneous shopping sprees): $2,500
Total Needed: $8,000
The first trip is in December 2025, so I want to have most of that saved by then.
Since I have 10 months to save, I do some quick math:
Formula: Total needed ÷ months to save = how much you should put away every month
👉 $8,000 ÷ 10 months = $800/month
Boom—there’s my savings target.
Instead of panicking and throwing everything on a credit card at the last minute, I’ll be saving and spending as I go—booking flights, locking in good hotel deals, and feeling financially stress-free along the way.
This Trick Works for Big Life Goals Too
Say you’re planning to buy a house. You want to put 10% down on a $500,000 home in five years, meaning you need $50,000. Sounds like a lot, right?
But let’s break it down:
Formula: Total needed ÷ months to save = how much you should put away every month
💰 $50,000 ÷ 5 years = $10,000 per year
📅 $10,000 ÷ 12 months = $835 per month
That suddenly feels way more doable than trying to come up with $10K all at once.
If you need the money in less than five years, the stock market might not be the best place (because if the market dips right when you need it… not fun & very stressful)
Instead, I recommend:
🏦 A high-interest savings account—easy access, a little extra growth at your local bank. You could shop around and find the bank offering the best saving account rates but don’t overthink it.
The idea is to keep your money available so that when you buy the flight, you can dip into that specific savings fund and pay for the flights, hotel etc.
Not sure where to park your savings?
Let’s chat! I’d love to help you find the best place to stash your hard-earned cash.
The secret to saving?
Work backwards, make a plan, and take it one month at a time.
Future-you will be so, so grateful.
Thanks for reading!
CC&Associates & Mackenzie