Saving has always been part of having healthy finances. Anyone who is thriving financially has some money set aside somewhere and they’re not just spending all they have every time they have something in their account.
The benefits of saving are huge. You will be more prepared for emergencies, you will have a comfortable retirement, you will be able to achieve major financial goals and, it’s just important to know that you have some money somewhere for peace of mind.
Therefore, it is absolutely necessary to have a savings plan. But the truth is that many people have come up with plans that aren’t really working. This is true because most people, according to statistics, either have too little saved or no savings at all. That means many will have to work up to their very last breath or possibly be homeless in future.
You don’t want to end up in financial ruin so it’s time to reassess why your plan hasn’t been effective and what you can do about it.
You didn’t create a realistic plan
Preparing a savings plan makes you feel like you’re finally getting your life together. As you think of how much you would want to have by a certain date, you can even increase the amount you want to save to keep you on your toes.
Having dreams that will push you is a great motivator but that won’t materialize if the plan isn’t workable. The strategy you’ve put in place and the goals you’ve set aren’t really making sense mathematically.
So, what you need to do is start over. This time round, do your research on how to do it correctly and consult someone who knows a thing or two about saving plans.
- How you can create a successful savings group
- Things you can cut out on when on a tight budget
- Is it time to break your savings kitty?
- You can save your money despite holiday expenses
You don’t have specific targets
Creating a plan without any goals doesn’t work that well either. The core purpose of a goal is to give you direction and motivation, and without that, you’ll feel like you’re just floating around.
A goal should come in the form of weekly, monthly and yearly targets. This will allow you to track your progress better and help you see how far you have to go for you to get that thing you want whether it’s a vacation, a new car or just a comfortable emergency savings.
You don’t have enough discipline
Discipline can never be left out of the plan when it comes to saving. And if you’re discipline hasn’t been strong, don’t feel bad because this is one of the biggest hurdles that many face.
It will be hard for you to rely on yourself to just set some money aside every month where you can easily access and spend. Have accountability measures like opening an actual account that can automate your saving.
You haven’t adjusted your lifestyle
Successful saving requires sacrifice. That means you will need to now separate your necessities from luxuries and the easiest way to do that is budgeting.
With budgets, you will be able to track your spending and align your daily spending with your savings targets. Sacrificing your wants might hurt for a while but, it will be worth it.
You have not left room for fun
Many people don’t stay consistent with saving because it makes them feel completely miserable. The idea is that you sacrifice all your enjoyment for a goal that will take years to happen but that’s not how it should be.
Within your monthly budget, allocate some money for fun. You shouldn’t starve your need to enjoy yourself because that will kill your motivation to save.