Savings plans can be different for everyone, for some it can be just $1 a day and for others it can be $10 a day. Do you go to Starbucks everyday? That’s $5 a day on average. Not much? That’s a whopping $1800 a year!
Let’s start with an easy savings plan, we can do!
Decide how to allocate your money – This may seem like the most confusing part of the budgeting process. Knowing how much you should be saving or putting toward personal expenses doesn’t always feel cut-and-dried, so if you’re unsure, try the 50/30/20 rule.
The budgeting rule suggests that 50% of your income should be allocated to essential expenses such as rent, transportation, and utilities; 30% should go toward personal expenses such as a Hulu account or clothes shopping, and 20% should be transferred into a savings account or used to pay down debt.
Set a time that works for you – Every week you should set a day that works best for you, to sit and review the weeks spending. Where did your money go? Take a look at every receipt. See where and how you spent your money. This is a great method to help you keep track of your expenses and make a solid plan to save money.
Start a spreadsheet – Not sure where to start? Don’t worry, I made one you can use. Download this spreadsheet and then you can start to keep track a little easier or you can simply copy and paste it into your own spreadsheet and then review the expense categories. You can also customize these expenses by adding “other” categories, such as subscription services (Hulu, MyDeen Magazing, etc) and debt repayments.
This is a great way to save some money, total it out and see how it works for you.
Do you have a savings plan already? What do you do?