If your goal is currently saving and you need money, you may be interested in knowing how to make a personal savings plan. This method can be applied to your personal finances so that you can reach certain economic goals in the month, year or in the period that you have proposed. It is very important that you are clear about how to carry out your undertaking and for that, we propose a personal savings plan. But first, do you know what it is?
What is a personal savings plan?
The personal savings plan is a series of actions or procedures that you must follow to achieve an economic objective that you have set in the past. To carry out the plan, you need to have had time to decide what you want to achieve and if it is achievable for you.
It is important that you know that the personal savings plan can help you keep your personal finances on the right track and so that you are skillful when it comes to managing financial results for yourself or for your home. But you should also know that following these steps does not imply that you are going to obtain automatic results or, far from it, instantaneous. To do this, the best thing you can do is consider the option of investing in a financial product.
On the other hand, it can give us multiple benefits: a healthy financial future, finding a discipline in the economic sphere, reaching goals that you set for yourself, increasing your ability to generate wealth, etc.
How to make a correct personal savings plan?
If you want to know how to make a personal savings plan tailored to you, you must follow the following steps:
STEP 1: Know what your current economic status is
Before starting, you should take stock of your financial situation. That is, observe what your income is and measure if there could be an event that conditions your economy in the short or medium term. It is important that you write this down, as it could cause you to have a different savings plan.
STEP 2: Set your goals
Once you know your status, you need to set the goals you want to achieve or the goals you want to achieve. It is the reason why you are doing your personal savings plan. You must be clear and concise but at the same time decisive.
If you are making your plan to have greater financial control, indicate it. If you want to save € 100 in the next 2 months, indicate it. It is important that you do not leave anything unchecked.
STEP 3: Know your expenses
At this point, you should know what are the expenses you have in your economy and write them down. Electricity, gas, internet, mortgage, leisure, etc. You must write down everything necessary to reduce the income that you have indicated above.
Thanks to the passage of time you will realize the need to reduce small expenses that are unnecessary but that, nevertheless, take up space.
STEP 4: Think about unexpected expenses
Although ant expenses can pose a problem for the health of your economy, you need to think that there are other expenses that you do not have to wait for.
They are the so-called unexpected expenses, those that we know can appear at any time and that we have to think about them when leaving a space and reserve money from our savings in case they occur. They are, for example, a car breakdown, changing the washing machine, new dishes or others.
STEP 5: Estimate your monthly spending
Write down each of these expenses that you are having on paper or digitally and try to estimate on a monthly basis those that you are going to have.
There are different techniques that allow you to control the expense you are going to have and thus save you trouble when it comes to managing how much you have spent and on what. Be smart when choosing one method or another.
STEP 6: Go to savings
Finally, remember that you should allocate part of your income to savings (even if it is not your ultimate goal). This can be estimated at 20%, 30% or whatever you think is appropriate to achieve your goals.
Be clear and objective when doing it, but above all be realistic with what you mark yourself. Can you really save 20%?
Probably wanna read:
- 15 tricks you don’t know to save money at home
- 10 best ways to save your money
- How to save money to live alone