How to Grow Your Savings Fast: The Power of a Strict Savings Plan
Do you suck at saving money? Here are a few tips that will make this easier for you…
Saving money can be a daunting task, especially when there are so many temptations to spend it. However, by creating a strict savings plan, you can quickly build your savings and achieve your financial goals. In this blog post, we will be discussing the steps you need to take to create a savings plan that works for you, as well as tips to help you stick to it and build your savings fast.
Here's the bottom line up front:
It is up to you to set your goals, put money aside, and take responsibility.
We are here to help but I cannot physically move the money around in your bank account (that would be illegal…).
Keep reading and make sure you watch the videos I embedded in this post.
Step 1: Set Clear Savings Goals
The first step in creating a savings plan is to set clear savings goals. Before you can create a savings plan, you need to know what you're saving for. Whether it's a down payment on a house, a new car, or a vacation, having a specific goal in mind will help you stay motivated and on track.
When setting your savings goals, it's important to make them specific, measurable, attainable, relevant, and time-bound. For example, instead of simply saying “I want to save money,” set a specific goal such as “I want to save $20,000 for a down payment on a house within the next two years.” This will give you a clear target to work towards and make it easier to track your progress.
When we have a clear goal, we are more motivated to set money aside and make a difference in our finances.
Step 2: Make a Budget
A budget is an essential tool for managing your money. It allows you to see where your money is going and identify areas where you can cut back. Once you have a budget, you can allocate a specific amount of money to your savings each month.
When creating a budget, start by listing all of your income sources and all of your expenses. Be sure to include fixed expenses (like rent or mortgage payments) as well as variable expenses (like groceries and entertainment). Once you have a complete picture of your finances, you can start to make adjustments to free up money for savings.
One popular budgeting method is the 50/30/20 rule, where 50% of your income goes towards necessities (like rent and bills), 30% goes towards wants (like dining out or shopping), and 20% goes towards savings and debt repayment. This can be a great starting point for creating a budget, but you should adjust it to fit your personal circumstances.
I dunno about you but I've never been a big fan of making a budget.
That is why I developed a system that you can use to make a budget without having to track every expense. Want that system? Watch this video from the YouTube channel:
Step 3: Automate Your Savings
One of the easiest ways to ensure that you stick to your savings plan is to automate it. You can set up automatic transfers from your checking account to your savings account each month. This way, you won't have to think about it or remember to do it manually.
By automating your savings, you can set it and forget it. You can choose the date of the transfer and the amount that you want to save each month. This will make it easy to stick to your savings plan and ensure that you are consistently saving each month.
This one is easy but it requires you to NOT spend your paycheck right away. Instead, set an automation so part of your paycheck goes over to savings before it hits your expense account.
Step 4: Avoid Impulse Purchases
Impulse purchases can quickly add up and eat away at your savings. To avoid this, make a list of what you need before you go shopping and stick to it. If you see something you want but don't need, give yourself a 24-hour cool-off period before making the purchase.
In addition to avoiding impulse purchases, you can also look for ways to save money on the things you do need. This can include using coupons, shopping sales, or buying generic brands. By being mindful of your spending and looking for ways to save money, you can free up more money for your savings.
Step 5: Look for Ways to Increase Your Income
Another way to grow your savings fast is to look for ways to increase your income. This can be done by getting a raise, investing in things like your Thrift Savings Plan or real estate, or busting out some side hustles on the weekend!
Side hustles are abundant in 2023. This can be anything from freelancing to starting your own small business. With the rise of the gig economy, there are countless opportunities to make extra money on the side. It can be something you enjoy doing or something that you are good at. It can be a great way to build your savings while doing something you love.
Want to learn about some great remote work from home jobs you can do? Watch this video on the YouTube channel:
Starting a small business can also be a great way to increase your income and build your savings. It can be a risky move, but if you have a solid business plan and are willing to put in the work, it can be a great way to achieve financial freedom. It's important to do your research and make sure you have a good understanding of the industry and market before starting a business. You should also be prepared for the risks and challenges that come with starting a business.
Step 6: Track Your Progress
Tracking your progress is an important step in sticking to your savings plan and achieving your goals. It can be helpful to set up a spreadsheet or use a budgeting app to track your income, expenses, and savings. This will give you a clear picture of where you stand and how far you have to go to reach your goals.
You can also set up milestones along the way to your big goal, this way you can measure your progress and celebrate small wins as you achieve them. This will help you stay motivated and on track.
Step 7: Review and Adjust Your Plan
Life happens, and your financial situation may change. It's important to review and adjust your savings plan as needed. If you find that you're not able to save as much as you planned, look for ways to cut back on expenses. If you're able to save more than you planned, consider increasing your savings goal.
It's also important to review your savings goals and make sure they are still relevant and important to you. If your priorities have changed, adjust your goals accordingly.
Want to make sure you are prepared for any financial struggle in the future?
Take this free course on Military financial discipline. It is available on our YouTube channel. Here is the first video in the series. You can click over to YouTube and watch the whole playlist:
Inside this free course, we cover the Thrift Savings Plan, Real Estate Investing, life insurance, basic investing, and a lot more.
Do You Need a Strict Savings Plan?
It really depends on your goals in life. Personally, I think having a solid investing strategy is more important in a lot of ways, but you need to have a solid foundation laid in order to begin investing. Having a strict savings plan, is one of the best ways to build that foundation!