A savings plan should be a part of everyone’s life. It is not something you need to consider but something that you need to make a conscious decision on doing and sticking with. Just like everything else that you are serious about you should have a plan on how to do it. With no plan it can just be another fickle idea that can go down the drain and be completely forgotten.
Here are a few ideas on how you can develop a savings plan and tricks on how you can actually stick with the plan.
Step 1: Keep track of your expenses
After every pay day, you feel the need to spend even on things you don’t need then you wonder where all your money went. So the first step in a successful savings plan is to keep track of your expenses. Do a budget list- write down all the bills you need to pay and things you need to buy. This way you can pay all your bills and you can cut off buying unnecessary things like extra lollies and snacks. Making a budget plan for your expenses will help you on the next step.
Step 2: Keep a part of your income for savings
After listing down your expenses and creating a budget plan, you need to decide now a reasonable amount for your savings. Allocate an amount that will still allow you to eat real food (not canned goods) and enjoy from time to time. But still, save at least a decent amount that will make you reach your savings goal in a short amount of time.
Step 3: Estimate how long it will take you to achieve the amount you need.
You can either check how long it will take you to save a specific amount of money or check how much you need to save to achieve the amount you need in a specific amount of time. You can use a savings goal calculator to know how long it will take you. If you’re saving for a large amount it may take you longer than you expect.
Step 4: Find a bank that offers high interest rate
An easy way to help you gain extra dollars is to have an account with a bank that offers high interest rate like 3.60%. With this in your savings plan it will help you reach your goal faster.
Step 5: Stick to your savings plan!
This will be the last step but the most important. Having discipline and sticking to your savings plan is the key to achieving your savings goal. Keep your money in a savings account to avoid spending it.