Savings Goals Part 2: Targets and Snowballs

It's savings week on No More Spending!

Now that I'm debt free the next step is to build our cash savings for emergencies and experiences {I no longer want to rely on credit to pay for anything}

Our goal is £30k in cash savings before December 2011. We have £14k towards the total already so in the next 22 months we need to save another £16k. I think the best way to do this is to go into spending lock down and adopt the same snowball and snowflake method I used to pay off my debt; a little bit of 'gazelle like' focus will help us to achieve this.

Below are the specific amounts we're working towards and the accounts we hold them in,

Emergency Fund £18k
-12 months of expenses, kept in a long term savings account

Mini Emergency Fund £1k
-New washing machines etc, kept in a savings account linked to checking account

Big Trip Fund £5k
-2012 travel plans, kept in an ING account

Travel Fund £3k
-Holidays, kept in an ING account

Renovation £3k
-Windows and a new back door, kept in an ING account

Next post: how we are allocating our available money to save.