Saving for the Future
Creating a Savings Plan
Creating a savings plan is an important part of financial planning. However, many people do not have a formal savings plan in place. In order to plan how much you can save, it is important to create a budget. Once you have an accurate picture of your financial situation, then you can make informed decisions about saving money. While addressing your short term financial needs and goals, it is important to also be looking at your long term plans. It is never too early to start saving.
You can think of a savings plan as "paying yourself". Once you decide on an amount that you will save each month, you should include that in your budget just like all your other expenses. If you treat your savings plan like a bill that must be paid, you are more likely to stick with it.
Some of your financial goals may require you to save money so you can afford what you want or need. Whether you are planning to buy a new car, move to a different house, or take a vacation, putting some money into savings each month may be a good way to make the goal attainable.