There comes a point in most of our lives when we need a large amount of money for something. It could be for a deposit on a house, so you can afford a trip, send your child to college, or buy a new car. No matter what it is, if you know this expense is going to be in your future, you should start saving up for it now. The best way to do this is to start a savings plan, one that accumulates the necessary funds a little bit at a time. To help you do that, we have some tips that should make your savings plan more successful.
First, you need to identify your goal. You should think about not only what the money is going to be for, but how much you are going to need and when you are going to need it by. A savings plan will be much more effective, and you’ll be more likely to stick to it, if you have a clear goal in mind. Write down your goals so that you know what they are going to be. If you have several things you want to save up for, we recommend coming up with a separate savings plan for each goal.
Once you have defined your goal, it is time to formulate a plan. The best way to do this is take the total amount you want to save up and divide it by the number of weeks you have until your end date. This will tell you how much you need to save up each week until you reach your goal. You can then decide if you want to put this amount away every week, every two weeks, or every month. We suggest not going longer than that, as the point is to save up a little bit at a time.
Now that you know what you need to save up each week, you need a place to store it. We suggest opening up a separate bank account and having the money automatically deposited in there each week (or two). This serves two purposes. First, it keeps the money in a separate place so that you are not tempted to touch it. When you see a large amount of money in an account, it can be tempting to use it for something other than your goal. Keep it out of sight and out of mind in order to rid yourself of the temptation. Having the money withdrawn automatically from your bank account and deposited into your savings account also makes it easier to manage. You don’t need to remember each week, and when you go to check it, you’ll be pleasantly surprised how much is in there.
With your plan in place, the rest is easy. Just let the deposits go in each week, and don’t touch the money. Whenever you have extra money to spare, you can add it to the savings account if you wish. The hardest part of a savings plan is to not use the money early for something else, so if you can beat that, you should be in the clear. Hopefully these few tips will help you to do that, and your savings plan will be a success. Good luck!