Hello beautiful people from across the lands. Having savings in place is one of the foundational steps toward financial independence. In this post, you will discover the 5 things every savings plan needs in order to be a success.
1. Do I have a budget?
Having a budget or spending plan whatever floats your boat helps you become aware of what’s coming in and what’s going out.
Knowing these numbers will help you establish a clear savings plan on what is actually feasible
2. How much is left over after expenses are paid?
Having a budget not only tells what’s coming in or out but most importantly what’s leftover.
If there is any money left over after all expenses are covered some of that can be allocated toward your savings.
If there is nothing left over after expenses are paid then this leads us to the next question
3. How can I increase my income?
Adding a side hustle to generate extra cash may be the move.
This all depends on your situation and your savings goal.
If you feel what is left over after your business is handle will get you to your savings plan then great!
If not or if you want to speed up the process looking into ways to increase your income will be essential.
When I first decided I wanted to start saving intentionally I only had $10 to contribute after every paycheck.
Even small numbers add up to big ones eventually
4. Do I have a separate high yielding savings account?
The keywords in this questions is SEPARATE and HIGH YIELDING SAVINGS ACCOUNT.
My savings account is separate from a regular bank account.
As much as I would like to think I’m disciplined to not spend it.
It’s better if it’s out of sight out of mind for me.
The national average interest rate on a savings account is 0.06%. That’s not even a full pennies worth!
Putting your savings in high yielding savings will get you more bang for your buck.
High Yielding Bank I Recommend
I currently have savings with Ally who currently has a 1.10% interest rate.
There are others out there that you can choose from.
I found Ally to work best for me.
I’ve had this account for about 5 years now and haven’t experienced any major issues.
5. How much can I automate to a separate high yielding savings account & how often?
Last but not least automation is key!
Once you figure out how much you are able to pay yourself figure out how often this will be deposited.
Set it and forget!
We are creatures of ease.
The more brain power it takes the less likely we will do it.
Treat it like a bill and count into your budget.
This should be non-negotiable.
I started with just being able to automate $10 per paycheck and now have at least 3 months’ worth of expenses saved.
Conclusion
Create a budget to determine how much is left over after expenses are paid.
Increase your income by looking to adding on a side hustle to boost your saving goals.
Open a SEPARATE and HIGH YIELDING savings account.
Automate your payments to your high yielding savings on a regularly scheduled occurrence.
Reaching your saving goals can come with ease once you put these steps in place. Until next time dream, believe, and achieve.
