An online banking customer can use a savings calculator to backwards plan how to reach a financial goal. The United States Army often uses backwards planning to reach certain milestones in its military operations, and American businesses use reverse engineering to determine the best ways to accomplish a task. Investors and savers can use the same principle to determine how long it will take them to save money for a goal such as fully funding their emergency funds, funding their children’s college educations, or other financial goals.
The US Army Uses Backwards Planning
The US Army uses a time management tool called backwards planning to help determine the timetables they need to meet to execute a complex military operation. For example, to storm the beaches of Normandy during World War II on D-Day, the Army had hit certain benchmarks in order to get all of those Troops, planes, and warships there. Supplies and men had to be pre-staged months in advance in England. Training had to be conducted in America. The Army uses a backwards planning process with the end goal in mind to determine when and what key metrics have to be hit in order to achieve that goal. American business leaders use a similar tactic in order to accomplish their business objectives. And, banking customers can use the same principles with their savings plans.
Using Backwards Planning With a Savings Calculator
Start with the end in mind when using a savings calculator. After inputting how much you want to save and how much money you have to initially deposit in an online savings account, a saver can then determine how long they will need to save money each month in order to reach his or her goal. The customer can change input sliders manipulating the amount of their monthly contributions in order to adjust the time it takes to accomplish the goal. The same changes can be made as well for the monthly contributions. If a banking customer has an absolute hard date that he or she wants to accomplish a financial goal, then they can see how much money per month it will require to deposit in the savings account to achieve the goal.
Starting with the end in mind can help a person trying to save for large financial goals to accomplish them. Using a savings calculator and manipulating the inputs can give the banking customer a unique look at exactly what it will take to accomplish those savings goals. How much does he or she need to save per month? How will those savings needs change if the timeframe is sped up? These are all questions that can be answer easily with an online savings calculator as long as the saver starts with the end in mind.
Hank Coleman is the founder of several financial blogs, focusing on topics such as finding profitable investing opportunities and using helpful tools like a savings calculator. He is an entrepreneur and professional in the government sector. Hank holds a Bachelor’s degree in Business Administration, a Master’s in Finance, and is currently studying for his Certified Financial Planning (CFP) credentials. Always looking for a trusted financial institution for advice and tips he tends to look up information at more often than not.