As I continue the road to financial wellness (meaning the health of my savings and bank accounts). I recently looked at my spending habits: how to assess, manage and monitor my charges to get them under control. Today I thought I’d share how to create a savings plan.
Each one of us will have some differences in our savings but ultimately the crucial step is to achieve our financial goals.
THINK – Close your eyes and picture yourself two years from now. This is a bit harder than you think (especially in this economy). Now image that you can see yourself and visualize one image that reflects strong financial management-buying a property, leasing a car, etc.
SCRIPT – Write down your goal. Anywhere. Your diary. A post-it. Your daily to-do list. Putting your objectives into words forces you to think more clearly. It also helps to make them more tangible and realistic. Mine (and I am putting it here) is to pay off my car and own the title, along with repairing the damage to my car that someone so nicely did one night without leaving a note.
SHARE – Tell it to someone else. Email your best friend. Text your hubby. Or tell me! You can post it below or email me at thriftygreengal at gmail dot com!
Now that you have set your vision, put it into motion.
Setting up an automatic savings plan which deducts directly from your monthly pay check is a solid approach. I set mine up with my employer to take $25 and directly deposit it into my savings account. But I also have my bank to put money from my checking account into my savings account every time I pay a bill.
Be aware: savings accounts at banks are low at the moment, so you will have to shop around. My bank offers a higher interest rate if you use your card 5 times a month. But you should check out your local credit union as they typically have a higher interest rate.
Don’t think you can accomplish this in two years? Let compromise and revisit your timeline or redefining your aspects of your vision. For example, if you plan on purchasing a piece of property buy a fixer-upper instead of a brand new home.