How to Create a Personal Savings Plan


Financial experts often encourage people to pay themselves first to build savings. This means that you set aside money for a rainy day before paying your other expenses. Following this simple piece of advice can help you build a financial cushion but following through takes effort and planning. If you're ready to start saving more, developing a personal savings plan can give you the focus that you need to reach your goals.

Things You'll Need

  • Recent pay stubs or income statements
  • List of monthly expenses
  • List of debts and assets
  • Determine what it is you want to achieve. Do you want to save for a vacation, set aside money to purchase a home or add to your retirement nest egg? Creating a list of specific short and long-term goals can help you form the blueprint for your savings plan.

  • Create a budget to determine how much money you have to put toward savings each month. Make a list of all the money you have coming in each month from your job, any investments you own, alimony, child support or any other source of income. Next, make a list of all the expenses you pay each month, including fixed costs for your rent or mortgage, utilities, cable, Internet and variable costs for clothing, entertainment and transportation. If your expenses are less than your income, the difference represents your starting point for saving.

  • Identify what it is you need to do to achieve your savings goals. For example, one of your goals might be to save $3,000 for a vacation that's six months away. If you're paid on a biweekly basis, you would need to set aside $250 a paycheck in order to reach your goal. Creating a specific action plan detailing what you need to do in order to reach your goal can help you measure your progress and stay on track.

  • Go over your budget to look for expenses that can be reduced or eliminated. For example, you might consider cutting back on your cell phone or cable service or dropping your gym membership. It's helpful to keep track of the money you spend on non-essentials, such as clothing or entertainment, to look for areas where you can cut back. As you trim your budget, you free up more money to put toward your savings goals.


  • Photo Credit Jupiterimages/ Images
Promoted By Zergnet



You May Also Like

  • How to Design a Savings Plan

    The easiest way to have more money is to manage your finances wisely. That's where a good savings plan comes in. Whether...

  • How to Design a Savings Plan

    When designing a savings plan, it is wise to calculate a working budget for figuring out extra money to dedicate to the...

  • How to Create a Retirement Plan

    How to Create a Retirement Plan. ... Although a 401k plan is designed for long-term retirement savings, the money in the account...

  • How to Plan a Personal Budget

    How to Draft a Personal Budget & Savings Plan. Drafting a personal budget and savings plan is the first step towards achieving...

  • How to Use a Template for Personal Budget Planning

    A template for personal budget planning can be a handy spreadsheet tool to plan and track your personal income and ... budget...

  • What Is a Personal Retirement Account?

    A Savings Incentive Match Plan for Employees (SIMPLE) ... An Individual Retirement Account, known as an IRA, is a personal savings account.

  • Savings and Investment Plans

    Saving and investing is an important part of preparing for life after retirement. Workers that do not save enough money during their...

  • The Best Long-Term Savings Plan

    Creating a long-term savings plan is the first step toward building savings that can act as a buffer during financial emergencies, fund...

  • How Do Health Savings Plan HSA Work?

    Health care is a top priority for any family. However, the rising costs of health care, insurance premiums and medication are putting...

Read Article

How to Renovate a Bathroom Inexpensively

Is DIY in your DNA? Become part of our maker community.
Submit Your Work!