You are here: DIME Home > Finance > Savings Plan: Stages of Saving Money

Savings Plan: Stages of Saving Money

Earning money is not enough to gain financial stability in life. You need to save money regularly to meet your future needs. Following is a step by step plan on how you can save money.

Author: Moneychutney.com
Date: Dec 11, 2012 - 8:11:36 AM

Printer friendly page

A penny saved is a penny earned

Earning money is not enough to gain financial stability in life. You need to save money regularly to meet your future needs. Following is a step by step plan on how you can save money.

Step #1: Set your savings goal
Personal financial planning at the right time (young earning age) will help your dreams come true. If you ignore planning for future, you cannot save money. No matter how young or old you are, you need to set goals for savings to ensure financial security in future. Over time, you will realize the importance of saving money by setting goals and achieving them on time.

Step #2: Save for emergency needs
This is an important step in savings plan. You need to have enough emergency surplus in cash to meet unexpected needs.

If you do not have enough to meet unfortunate situations like loss of pay, sickness, house/vehicle repair, etc., it may strain your finances and you cannot save properly. Further, you may end up closing your savings plan abruptly. Hence, you need to have adequate emergency surplus to reach your financial goals.

Step #3: Save for short-term needs
Short-term goals are those that can be achieved within a year or two. For instance, vehicle purchase, home renovation, etc.

For this, you need to save money by using your home budget to see where you can reduce expenses on extra things. Thus, you may consider reducing expenses on eating out, shopping and entertainment. Keep track of your spending regularly to know where your money is going. You can do this by carrying a small book to jot down your expenses, or you can download a personal budget application to keep an eye on your spending.

Step #4: Save for long-term needs
Long-term goals are the ones that you want to reach in around four to five years. This can include arranging money for your kid's education, buying a house, saving money for retirement, etc. If you don't consider saving money for long-term goals, you will end up having little or none when you retire.

Saving for long-term goals is a difficult process and you need to be frugal at every stage of your life. You need to control your spending and inculcate good saving habits.

Most people think that saving money is a difficult task. However, if you start saving now with self-motivation, you can reach your savings goals easily. The sooner you act, the sooner you reach your financial goals. Therefore, set your savings goals, create your planned budget to cut unnecessary expenses and see how you can make big savings fast.

Money Chutney provides insightful articles on saving, investing, budgeting and financial planning. These articles are intended to provide knowledge and make people aware of methods and techniques on personal finance, so they can use it to better their financial situation. These personal finance strategies are targeted towards educated middle class people in India, who typically look for information on how to save money.

View all articles by Moneychutney.com

Link to this article:

Code to copy:

<a href="http://www.dime-co.com/finance/Savings-Plan-Stages-of-Saving-Money.shtml">Savings Plan: Stages of Saving Money</a>

---

Search for articles: Advanced Search

Recommended Associates

Latest Articles in All Categories

Putting Up a Small Commercial Printing Business

So You Might Be Unemployed And Desire To Become A San Francisco Real Estate Investor Now

Meditation and Mindfulness: Dealing With Emotion

CPA Websites: Five Essential Ideas for Composing Convincing Articles

Set Goals In Order to Come Up With Your Action Plan

Is the Air in Your Home Safe to Breathe?

Coarse Fishing Tackle Review: The JW Young 13ft Trotter Rod

Section 1031 Exchanges For San Diego Real Estate Investors

Phoenix Real Estate Investing For Highest Possible Earnings

Legendary are the Volk Racing TE37 Wheels

Developing the Next Generation Wall Station (ChaseDesk™) for Healthcare - A Case Study

What are step down transformers?

Introducing Sharehype, the Revolutionary Tool for Online Marketers

Rewards To Shopping For Austin Real Estate On The Web

Hydroponics for Beginners

Do you write?

Would you like submit your articles and have them approved on a priority status? Find out more about how you can become a Priority author for pennies a day! Click here.

News Feed

Dime-co.com Home

Business (9328)

Computers & The Internet (5740)

Entertainment (1348)

Family (958)

Finance (1963)

Health (4246)

Home and Living (6670)

Marketing (6113)

Shopping & Product Reviews (2624)

Sports (694)

Travel and Vacations (1689)

Video Articles (1)

Editors Pick (1)