Saving money is hard. We all know that, and it doesn’t help when we tell you to cut up your credit cards and stop buying things on the Amazon app. But there’s a way to make saving money easier: with a savings plan! If you’re looking for an easy-to-follow guide, then this blog post is for you. Here are useful tips on how to create the perfect savings plan.
This may seem obvious, but many people don’t do it at all! It’s important because if you don’t have specific goals in mind, then what will motivate you? Maybe something like “I want enough money saved so I can buy a house.” That sounds nice, right? The best way to find goals is to look at your finances and think about what you want out of life.
With that, we can put together a list:
- I want to buy a house
- I want to get out of debt
- I want to travel
- I want to buy a car etc.
Figure Out How Much Money You Need to Save
There are three ways to do this, and all three are okay! First, you could just pick a number and say “enough to buy a house.” It’s up to you, but realise that this is just a starting point. You will need to save more than that.
Second, you can try to find out how much money you need for the specific goal. For example, if your goal is to buy a car, you should look up how much it costs and save that amount.
Or thirdly, you can figure out how much you will need to save monthly and multiply it by the number of months until your goal.
Decide How Long You Have Until Your Goal
You can do this in a few ways. If you know, for example, that you need money to buy a car in three years, then you can put that in your savings plan.
If you don’t know how long it will take, you can try the monthly plan mentioned above. Put in how much you need to save each month, and see what that gets you after twelve months.
Control Unnecessary Expenses
This is the hard part, but it’s really important. You want to cut out all unnecessary expenses and focus on your goal. Here are some examples:
- Credit card: Try to reduce your credit card usage. Delete some apps that make you do unnecessary payments.
- Takeout: Make your lunch every day, or cook at home.
- Going out: Go to the movies on weekdays instead of weekends. Also, go out with your friends less often.
- Housing: Rent a smaller apartment in a less expensive part of town.
- Car: Carpool with friends, or be okay taking the bus.
It’s not easy, but it will be worth it. Remember that your savings plan is something you want to do for yourself. The money you save will make you happy, and it will help you get to your goals!
Now that you have an idea of how a perfect savings plan works get started! You can also consider opening a savings account with IndusInd Bank to leverage the attractive features it has to offer.
Still got questions? Ask us in the comments!