The shopping basket, the price of electricity, the rise in the mortgage…
How can I save to have a mattress no matter what salary I have? It must be taken into account that when we want to meet objectives that affect our pocket, we do not always do so fully informed and this should be the first step.
Starting to save often leads to financial stress or overloads that affect our daily lives and that can complicate our own well-being. Hence the importance of having a savings plan that can not only be used in an emergency, but for any financial objective that we want to achieve.
Organizing your finances is a relevant topic that everyone should consider, but very few do. Its benefits are multiple and will help, among other things, to meet any economic objective.
How to build a savings plan
The first thing to be clear about is the reason why this savings plan is being made. This will be a month-to-month motivation to save money in an account or invest in the long term. The savings reasons will be the goals to be met. They can be one or several, everything resulted from your goals.
One factor that you should consider when creating your savings plan is the time that you will spend to fulfill it. Remember at this point that not all your goals should be achieved at the same time.
Acquiring a car can require more or less time than saving money for a vacation or paying for a master’s degree. For the same reason, when you define your objectives at the same time, you should analyze the time that will persist to reach the goal.
Another point to have a good plan is knowing how to calculate how much the amount of savings will be month by month or weekly. Start with small amounts like 10% of your salary. If you see that you can eventually increase it without affecting your basic needs, you will increase it.
How to make a good savings plan
It is for this same reason that we are going to another factor that cannot be missing in your savings plan. Monitoring.
Keep an eye on how you are progressing with your goals, if you are close or far from meeting your goal, if any adjustment is required. All of this must be seen periodically for your plan to be a success. The most important thing of all is that it be viable in the long term. The idea is that it does not generate any type of personal stress, and that it helps you.
If you already have all of the above, you should now see your budget. All income, expenses and the amount allocated to save.
Do a global review of the decision you are making for your plan. This way, you’ll be able to see early on if you need to make any adjustments and avoid overloads, problems, or roadblocks that prevent compliance.
Since it is very likely that you have more than one goal in your savings plan, you should organize them by priority. Since it is very likely that you will not be able to comply with all of them at the same time, and you will have to analyze which is more important to comply with in the short, medium and long term.
Define a different time for each of your purposes, but not the quantity. Your savings plan must be global since, as we have said before, it will not always be possible to comply with everything at the same time.