Part 8 of our Back to Basics Series
We all have goals and we usually need to save money in order to reach them!
The biggest obstacles in saving money is our spending or lack of saving habits. By not having structure or a savings plan in place, it’s no wonder that there is usually nothing left to save. Have you ever noticed how your money just disappears when you have no plan for it? This makes it seem like you cannot make progress towards your financial goals, often feeling discouraged and without hope. To make things worse, everyone thinks that coming up with a savings plan is overly complicated.
I’ve got some good news that can help you overcome the discouragement you may be feeling in not making progress on your financial goals. We have seen lives transformed and goals achieved with a little structure. Creating a savings plan is not overwhelming or intimidating, but actually quite simple.
For the purpose of simplicity, we will not factor in rate of return or inflation. Planning your savings and retirement income is a more complex issue, one requiring a proper financial plan.
To begin your savings plan ask yourself these questions:
- What am I saving for?
- When do I need this money (in years)?
- How much do I need to save in that time?
- Take the amount in step 3 and divide by the time in step 2.
- This answer is the amount that you will need to save per year.
- You can even break this down further into months, weeks, and even days.
- For years to months, divide by 12
- For years to weeks, divide by 52
To start a conversation about pursuing your financial goals or setting up a savings plan, please feel free to contact us. However, you don’t need us to get started. We have several financial calculators available as a resource to answer many of your questions. Click here to see them all.
Pursuing your financial goals shouldn’t be so overwhelming that you procrastinate or never pursue them. With some structure we hope that this gives you clarity and direction. The biggest obstacle is procrastination, so start now. You deserve to achieve your goals and dreams.