At SABER DE GUITA, we bring you the best tips for organizing your money and achieving your financial goals. In this article, we tell you why a savings plan is key to improving your well-being and how to start structuring it easily and effectively.
1. Organize and plan your finances:
Before you start saving, it’s essential to review your personal finances. How? There are three ways to organize your money:
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Identify all your income: Salaries, extra jobs, etc.
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Check your expenses: Divide them into fixed (rent, utilities, etc.) and variable (going out, cravings, etc.).
Being clear about where your money comes from and where it goes will allow you to take the first step toward your savings goal.
2. Define an emergency fund:
Once you know how your money moves, it’s time to build your emergency fund. This means setting aside a portion of your income to cover unexpected expenses and avoid going into debt.
You can calculate this fund based on twice the cost of the most expensive appliance in your home.
This fund gives you financial peace of mind by covering emergencies (car breakdown, home repairs, medical expenses, etc.).
3. Build a savings fund:
Another important part of your plan is to establish a medium- and long-term savings fund. Think of this savings as an “autopilot” that grows month by month and brings you closer to your goals.
4. Current expenses of the month:
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50/30/20: A widely used rule suggests that you allocate 50% of your income to essential expenses (rent, utilities, food), 30% to personal expenses (leisure, outings, treats), and 20% to savings.
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Tip: If you’re just starting out and 20% seems like a lot, adjust it to your reality and aim to gradually reach that percentage.
To better track these numbers, you can use Personal Pay’s transaction overview and complete a spreadsheet with each expense and income. Consistent tracking is key to maintaining commitment.
5. Bonus track: Don’t overspend
The key to avoiding unnecessary expenses is planning.
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Plan your spending: Review the weekly discount and perk days (for example, at supermarkets, restaurants, or entertainment) and take advantage of them to optimize your spending.
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Plan your week based on benefits: Time your shopping trips to days with discounts or promotions. It’ll help you stretch your budget.
