10 helpful tips for designing a successful savings plan

In the absence of money, our first reflex is to resort to credit, but it will only do that in the short term, we need more money. Would not it be easier to lend ourselves from our own savings? Save a lot and it is possible to establish a savings plan. The younger begin to save, the better it will fare in life.

Do not keep leftovers – plan
To organize a good savings plan, start with a list of available resources and revenues and the decision to preserve some of these with a defined objective. It is not a question of keeping what it exceeds but of planning earlier to consume later, getting the maximum performance for your money. You can have several concurrent savings objectives.

Clear accounts, lasting friendships
It makes no sense to set aside money to save if at the same time is wasting money on paying high interest debts. First of all, pay your debts, and avoid spending only credit.

Set a monthly budget
It should stick to a fixed monthly budget. A dispassionate and realistic analysis of your monthly budget will help you have more money and save effortlessly with a single gesture: avoid excessive or unnecessary expenses.

Set saving goals
You almost automatically meet some institutionalized savings objectives to contribute to your retirement account and pay your health insurance. Write the list of those things you accurate, and even of those that want to and are not so necessary, formulate objectives of saving to cover these expenses according to their priority. This list should be a top priority: to save for an emergency.

Better safe than sorry: save for emergencies
Always confident that if an emergency arises, it will be possible to finance it with credit, but what if you lose your job? Most emergency is not to have resources to meet our daily expenses. How much must be saved for emergencies? Save for an emergency fund consisting of at least three months’ salary or current budget.

Save to fulfill several simultaneous targets
As the monthly budget includes several items, the monthly savings can be assigned to several targets once the list of priorities established, it only remains to assign a monthly rate of savings as the necessary amount and priority. Carry a written record of your plans.

Let the reward for loyalty
Many brands and businesses reward customer loyalty products, discounts, bonuses or miles. Provided the price is equal or more competitive than comparable brands, prefer these brands and set a record of loyalty.

Set your financial strategy
You already know how much cash do you have and what percentage of your income can be dedicated to savings. Go to your bank and ask if there specialized for financial advice. Also ask for a monthly automatic account transfer from your paycheck to a savings account.

Use instruments to raise capital
Learn about all the available financial instruments to diversify savings, maximize performance and cover both the inevitable ups and downs of the financial market. For example, you can invest in a savings account. The bank will pay a small interest every month. Or you can opt for a certificate of deposit (CD), through which you will get more interest to leave the money on deposit for a month or longer and increase its capital by a high percentage over time by means of compound interest. You can also buy US bonds or invest in stocks and mutual funds.

Increase your heritage
It is possible that you may have a good income and basic needs already covered. However, everything changes and always will be safer with a higher equity. Buy a home and pay off the mortgage before retirement.

One of the signs of adulthood that sooner can be acquired is the ability to save with persistence and perseverance. It indicates that we can take care of ourselves and those who are or will be our position with responsibility and solvency. There’s nothing like the peace of knowing that you can count yourself under any circumstances!