It is always a good time to save and maintain this goal throughout life, although sometimes getting into the habit can be difficult. A savings plan will be essential to achieve your goals.
The first step whenever it comes to personal finances is to know your budget, that is, what your income is, but the most important thing is to know what you spend and how much you have left at the end of each month.
This way you will know if it is possible for you to save , if you must reduce expenses or if you must make an adjustment to your budget.
Once you know your income and expenses, every savings plan should have some points in common:
Set different goals throughout life. Anyone would like to save for a down payment on a car in a couple of months, but it is unlikely that you will be able to have that amount in such a short time.
Like any strategy, it is important that you establish goals to meet in a certain time, they must be realistic and achievable. Once you’ve determined how much you can save per month, figure out how long it will take to collect the amount you want, but also be flexible.
Suppose you can save 1,000 pesos, you want to go on vacation and you already estimated that you are going to spend 5,000 pesos. In that case, your goals should be to have that money saved for your vacations, in a period of 6 months, for example.
Automate your savings. This may be the method for you, if you constantly forget to set aside an amount per month and end up spending all your money.
Some banking institutions have a tool to create a section of the money that they deposit each month via payroll.
Through a bank account that the financial institution manages, you can define a certain amount per month and choose a savings period, although you can cancel it at any time, but in the first instance you will already have it separated from the rest of your money.
If you stay consistent for several months, your savings plan will take shape and you will begin to form the habit of not spending all your salary each month.
Increase what you can save. This can be done gradually. Since you already have your expenses identified , it will be easier to see which ones are not necessary and therefore you can completely eliminate them from your consumption.
Also consider that if for any reason you had fewer expenses in the month, that extra money should be separated immediately and sent to the savings account, thus avoiding the temptation to spend it on unnecessary purchases.
Don’t forget the emergency fund. In addition to what you set aside monthly, any savings plan should consider having additional money just for the emergency fund. The recommendation is that you have this in an independent financial account.
This fund will help you deal with some unexpected commitments, such as maintaining your expenses for a certain period of time, if you lose your job or a medical or family emergency.
It must contain at least three months of the amount you need to cover your monthly expenses, for example, if your expenses in the month are for 7,000 pesos, the fund must have 21,000 pesos.
Of course, you can increase this amount whenever you have the opportunity and avoid resorting to it unless it is an emergency.
Since you know where to start to create a savings plan, and remember that goals in life are achievable with perseverance and discipline, especially if it is your financial life.