7 Simple Steps to Start a Savings Plan

Steps to Start a Savings Plan

Are you looking for a way to save more money? Start a Savings Plan with these easy to follow seven simple steps.

Now that it’s the start of a new year, you may have some savings goals; this is the better time to do it as you will see a lot more progress than, say, if you start halfway through the year.

Have you delayed saving because you feel like there’s no money left after paying your bills?

steps for savings plan

Saving can be a challenge at first because you need to know where your money goes now and be honest.  

No matter what you have been spending your money on, acknowledge it, be okay with what you’ve done, it’s in the past, but now it’s time to start something new for yourself and your family.  

This post will talk about the seven steps to starting your own personal savings plan, how to reach your financial goals faster and the benefits of doing so!

Many people have trouble saving, especially if your income is low, but I tell you that you can do it without breaking the bank.

Like other things in life, savings will not be successful unless you plan and take action.

Start a savings plan by simply putting away $20 every pay or monthly, but you may decide that you want to save more than that.

Time to get ahead; let’s get started!

7 Steps to Start a Savings Plan

 savings plan

 For you to be successful in savings, you must do all these steps in order also answer them correctly (thoroughly) and honestly.  

Even if you’ve attempted this previously, start again from the beginning.

1.  Track Your Spending for One Month

This step is important as you need to assess where your money is physically going each week and then in total for a month.

This will give you the true amount that will end up in your savings.

Tracking every dollar that comes in and that goes out will give you clarity of what changes must be made with your spending in order to save.  

Expenses & Income

The easiest way for this would be writing every day what you have spent either in a notebook or your phone from the day you received your pay or wages.

If by chance you are a cash person, write down how much you have taken out from your pay, get a receipt for everything that you purchase and keep them. If you forget a receipt quickly put a note in your wallet or on your mobile. 

Make a mental note to check from time to time ensuring what you have left and your receipts equal what you had at the start.

This job is easier if everything you spend is in your bank account.

Do this regularly as it can be hard to remember what you have spent money on days later or the transaction on the bank statement is different to the store you purchased. You don’t want to put things to miscellaneous as that defeats the purpose.

2.  Determine your savings

I recommend you start small either $20 to $40 in the beginning as you can change this anytime you like.

This amount should be added to Step 1 as if is a weekly or monthly bill then recalculate what is left.

Is there any money left over from your pay and the essential spending that you can add to your savings? If so, add this money to your savings and lock it away as if it’s spent.

If there is nothing left, that’s when you have to look at what you’re overspending money on and find ways to cut down on anything not essential.

When this is achieved you can start a savings plan and add extra when you have found more savings. Find out ways of simplifying your life as these tips will help you save money.

3.  Automatic Transfer to Savings Account

Start a savings plan by making savings part of your weekly routine by setting up automatic deposits from your pay or bank account.

Transfer your savings to an internet saving account and set and forget.

These days you can easily set up this type of account and either have it showing on your list or hidden with no visual access.  

I would recommend hiding the money so you can’t see it and when you need it, that’s when you are surprised with how much has been saved.

If you have several goals you can always have two accounts.

An emergency fund is handy to have as you don’t know when something will happen but you will be prepared. 

Saving for something that you really want will give you enthusiasm and a target to reach.

If you’re thinking of stashing your money, think twice, as it’s easy to access and there’s every chance you will grab a dollar bill for unnecessary purchases.

4.  Make a List and Plan for Your Savings Goals

Now it’s time to start your savings plan by having a plan of your savings goals.

This needs to be realistic as to your answers in Step 1 and the physical amount in Step 4.

savings goals

It is always good to have a list and plan but if your expectations are bigger than the reality you are setting yourself up for failure. Then no savings will ever accumulate and you go back to your old spending behaviours.

The point of this is to start a savings plan with what is financially possible and have a reward at the end.

Is there something, in particular, you’d like to purchase or would you like to have an account that is there for emergencies, maybe pay off some debts?

Remember to double-check if an item is really a Want or a Need.

Defining what saving goals you have and planning how much is required to be saved in order to reach your goals.  

Once this is done the amount in Step 3 may be increased and the next step must be done.

5.   Plan Your Monthly Purchases 

You have a savings goal, but for most of us the money we have is not enough to reach our goals within a certain time we would like.

The next best thing is to revise Step 1 and your expenses for your saving goals.  

What expenses can you cut back on or make a budget for? For example – food, electricity, going out, and general purchases.

When I say the words’ cutting back’ it doesn’t mean going without or having none, it means having less of and knowing what you’re buying when you need it and not for the sack of it.

Buying products only when they’re on special, buying a less expensive brand than another, checking if there’s a Groupon or coupon discount, any discount before purchasing or just being a bit frugal.

There are so many ways to save on spending and whatever works for you will help with your saving goals as that’s the main priority.

6. Have obstacles in your way to getting to your money

Don’t make it easy for you to get hold of your hard-earned savings.

Put obstacles in your way so you can’t get to it.

One way I have already said above is to add a savings account on the internet but go to the settings and disable this feature so then it’s not shown.

Another is to lock your money away in a Short or Long Term Deposit for a length of time that you see fit and may access it or roll it over but for a shorter period.

Be Strict with yourself, reduce impulse spending and consciously have that feeling of reaching your saving goal and receiving the reward you desire.

7.   Keep the Process Going

Any savings plans and goals are flexible as things could happen and you need some of it. Do so but make great attempts to put it back and more. Don’t make a habit of taking it out but a habit of adding more to it’s especially on those times you can.  

You have to take into consideration that prices go up, that saving goal may not be such a priority as you thought and something else is.

The best scenario would be that you’ve done better than you thought by hiding it away and not seeing it grow and you have more than you thought.

Any increases on your pay or bonus are given or any extras you’ve been given put straight into the savings accounts as it’s money that you didn’t have before and still don’t until you need it.

Reassessing priorioties

Reassess your spending with your income, make any changes possible to your automatic payments to your savings account.

When saving becomes a habit, you feel good within yourself, and that you achieve, so it doesn’t seem to be a chore but something satisfying and rewarding.

The only way to keep your savings growing is by adding regularly and a bit more each time if it’s possible. But if you have any setbacks, that’s okay, just keep going where you’ve left off and got back on track with a vengeance and determination.

Follow seven simple steps to start your savings plan today! 

Similar Posts