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Useful tips for designing a successful Savings Plan

Despite the need for savings to maintain stable finances, very few people save a portion of their income each month. A large part of the population in every country is not prepared to deal with unforeseen events, much less to ensure their retirement.

Whose side do you want to be on? Would you like to start saving money steadily? Would you like to have a savings plan and be better prepared for the future? In this article, we will share some very simple tips to help you save without failing.

1. Set the goal

The first step in starting a money-saving plan is knowing what you will use it for. When you are clear about your objective, you can define amounts and dates. Your savings plan and the saving time will depend on the amount you want to collect, so it is advisable to set short, medium, and long-term goals. You can start with simple goals of a couple of weeks and work your way up to goals of months or even years.

When you set a goal, ask yourself the following questions:

  • What is the cost of your goal?

  • How much money can you save each month?

  • How long will it take you to reach that goal?

  • What is the best savings plan?

2. Make a budget

To save, you must know exactly how much you earn and, of course, how much you spend per month. If you don't have a clear idea of ​​how you use your money, start listing all your expenses (from the smallest to the largest), as well as all your sources of income. Then classify the expenditures into general necessities and discretionary expenses.

3. Diversify your savings

This is closely tied to setting goals for your savings. Although it is important to save money, it is not just about saving for the sake of saving. In addition to saving money to buy a plane flight or change cell phones, you should consider a fund for emergencies and savings for retirement, among others. Don't make the mistake of raising money without considering future needs.

4. Choose the instrument of the ideal savings for you

While storing cash in a box or under your mattress is convenient, it's not the safest or most profitable option in the long run. To keep your money safe and make your savings earn interest, you can choose a savings account or certificate of deposit.

If you have or will receive money that you will not need to use daily or monthly, you may want to open a savings account. In this type of account, your money will earn interest instantly, at the rate set by the bank. The longer you can leave your money in the account, the more interest it will accrue.

5. Learn to buy

Another essential step to saving successfully is knowing how to buy. What does this mean? It is about being well informed of what your options are before comparing. When you have to buy something, research in different stores (and online) the price, the available offers, and the purchase conditions. Although it may seem like a negligible difference, this will save you a lot of money in the long run.

6. Know the details of your contracts

This is especially important for people who have some loan or credit. If you usually use a departmental card or are paying in installments, read the terms of the contract carefully (preferably before signing). This way, you will know how much and when you have to pay to avoid surcharges or penalties.

7. Check your progress frequently

Budgeting is a very useful tool that will help you organize your money and allow you to see your progress. We recommend that you have your budget on hand and review it at least once a week to prevent situations that could lead you to break your savings plan and measure progress towards your goals.

Are you already saving your money? The faster you start saving, the more benefits it will bring you. It doesn't matter if you have $ 10 or $ 100. Remember that to start saving; you do not need a lot of money but perseverance and order.