How to Keep Yourself on the Savings Track

July 19, 2020

While preparing a financial budget is a difficult task, committing to it over the long haul may be even more difficult. Here are a few tips to help you start your budget planning and keep yourself on the savings track:

1) Watch what you spend. Begin the process by recording all your expenses, including living expenses, utilities, child care or elder care services, and necessities such as food, clothing, and medical care. 

2) Treat savings like expenses. You will be more inclined to put money aside for savings if you treat it like an expense that must be made on a regular basis.

3) Allocate income in terms of percentages. Determine what percentage of your income goes to each expense, and then categorize these expenses as either fixed or flexible. Generally, flexible expenses, such as entertainment and eating out, erode earnings.

4) Prioritize your expenses. Take your list of expenses and rank them from most to least important. Eliminate the unimportant expenditures and redirect this money to a savings program. Gradually, try to reduce unnecessary expenditures. As you eliminate expenditure amounts, write a check for a like amount and deposit it into a special account.

Remember, putting yourself first means making your financial future and well being your top priority. A disciplined savings program can ultimately pay you dividends that will help solidify your financial future.