• Home
  • GET THE BOOK
  • Start Here
  • Blog
  • Free Resources
  • Shop TBM
  • Courses

The Budget Mom

Real Women. Real Life. Real Finance

  • Home
  • Products
    • Live Rich Planner
    • Budget By Paycheck
  • Blog
  • FREE RESOURCES
  • COURSES
  • GET THE BOOK
  • Shop TBM

A life you love on a budget you can afford.

Here on TBM®, I provide you with simple, easy-to-follow solutions to help you budget your money, pay off debt, save more, and crush your financial goals. But more than that, I give you the tools to start doing the things that matter most to you, on a budget that actually works!

The Savings Strategy That’s Preparing Me for the Future

July 4, 2018
SAVE MORE

Share876
Pin1K
Share
Tweet3
Email
2K Shares

Do you want to create a savings plan that actually works? Here is the exact system that keeps me out of debt and allows me to save cash for the future!

If I were to ask you how much you need to save to cover all of your expenses for the new year, would you be able to tell me?

Do you know how much you spend on birthdays? How about Christmas? Do you spend money on back-to-school shopping? Do you cover any of these expenses with a credit card?

Before having a solid financial plan, I had no idea how much I really spent on forgotten expenses. When you go to the store to buy a $50 birthday present, you don't realize how much you spend throughout the entire year on birthdays. For example, if you have five birthdays that you spend money on during the year, and spend about $50 for each one, that's $250.

Could you cover that cost today without using a credit card? It's only $250, but for a lot of people, not being financially prepared for these types of expenses leads to debt.

Budgeting and saving have a lot to do with numbers, but they also have to do with organization. If you don't know how much you are spending or where your money is going month-to-month, or even for the entire year, you will fail and have a higher chance of falling behind.

If your budget does not include an effective spending or savings plan for upcoming expenses, it's not complete.Click To Tweet

You will always have moments where you come up short or feel like your budget failed you.

If you are only thinking about saving for retirement or huge life events, you're missing a part of the bigger picture. If you live paycheck-to-paycheck, are trying to pay off debt, or have income restrictions, it only takes one unexpected or forgotten expense to derail your budget.

Here's how I prepare and create an effective savings and spending plan.

LEARNING HOW TO SAVE

It's never easy to develop a new habit or start a new routine. If you have never saved money on a regular basis, it can be hard at first. Saving is difficult, but spending money isn't. You have to develop the habit of saving, and you can only do that if saving becomes a part of your lifestyle. A good way of making savings part of your lifestyle is by automating it. Check out CIT Bank Savings Builder account.

  • Read: How to Save Money for Upcoming Holidays and Events

DEVELOP SPECIFIC SAVINGS GOALS

For me, I have many savings goals. In fact, I determine my savings goals for the entire year before it even begins. You can only form new habits when you adopt specific behavior patterns. Saving has to be a regular part of your spending plan for it to become a habit. For me, I save money almost every single week.

Not only does saving have to be a regular part of your routine, but there has to be an underlying motivation on why you are saving. I think for most people, and for me especially, I save cash, so I don't feel pressured to use my credit card. Not going into more debt or using my credit card, is the motivation that keeps me on track with my spending and savings goals.

So how do you develop specific savings goals? I use a monthly calendar to help me map out the entire year before it begins. My schedule helps me determine which holidays or special events I need to prepare for and it gives me an estimate of how much I need to save.

The first thing I do is go month-by-month and write down on my calendar every major holiday. I then write down recurring birthdays that I spend money on year-after-year. Next, I write down any known occasions that will be happening. For example, if I know a friend is getting married in June, I will write down their wedding date on my calendar. Do you have a family member that is graduating in the new year? Make sure to write this event down on your calendar.

Any event or holiday that you spend money on throughout the year should be written down on your calendar. Plain and simple.

Next, I go through my calendar and write down a specific savings goal for each holiday or event. If you are not sure about how much money you will spend on a particular occasion, you need to analyze your spending from last year. For example, are you unsure about Christmas expenses? Look at your bank statements or expense tracker from the previous year and use that amount as your savings goal.

  • Read: Where to Invest Your Money for Short-Term Savings Goals

ORGANIZATION. ORGANIZATION. ORGANIZATION.

One of the most common answers or statements I receive from people that I have coached on using this savings technique is that they feel overwhelmed.

Looking at your savings goals for an entire year can seem overbearing. You have so much you want to save for, and so many holidays and events you spend money on that it can look like too much. Before you know it, you are saving for twenty different things, and have twenty separate envelopes.

I have learned over the years that lack of organization, not just for your budget but for your overall financial life can harm your finances as much or even more than being short on cash. That's why it's crucial to have a savings plan that is easy to follow, is organized in a way where you can see the big picture, tells you exactly how much to save, and when to save it.

I have created two savings worksheets that help me stay motivated, on track, and prepared for any expenses that might come up.

Do you want to create a savings plan that actually works? Here is the exact system that keeps me out of debt and allows me to save cash for the future!

YEARLY SAVINGS GOALS & EVENTS WORKSHEET

After your savings goals are written down on your calendar, it's time to develop your savings plan.

The first worksheet that I use is the Yearly Savings Goals & Events Worksheet. I go through every month on my calendar and write down every holiday and event on my worksheet. After writing the description, I write down the total amount that I would like to save for each goal. If you want to save money monthly, You need to write down how much you need to save every month up until your goal due date.

For example, if I want to save a total of $50 for Easter, and I start saving in January, I only have three months to save a total of $50. You divide your savings goal of $50 by three, which means you need to save $17 every month starting in January.

Even though Easter is in April, you want to make sure you have the cash before the actual date of the event or holiday. You will need time for shopping, decorating, planning, and other holiday-related expenses. For me, I always plan to have the cash available a month earlier than the date of the event or holiday.

I use the Due Date area of the worksheet to write down when I would like to have the cash available. For my Easter example, I would write down March, not April. Remember, I want to have my savings accumulated BEFORE the actual date of the event or holiday.

Do you want to create a savings plan that actually works? Here is the exact system that keeps me out of debt and allows me to save cash for the future!

YEARLY SAVINGS TRACKER

The second worksheet that I use is the Yearly Savings Tracker Worksheet. Tracking your progress as you work your way towards your savings goals is extremely important. You want to be able to quickly see if you are on track to meet your goals.

Being able to visualize your goals, and organizing them in a way where you can see all of your savings goals in one place helps with the overwhelming feeling you might get from having multiple savings goals. This worksheet enables you to do that!

The first step is to write down your savings goal description. Next, write down the total yearly amount that you would like to save. The area to the right of your annual savings goals is a monthly tracker. Use the due dates that you wrote down on the Yearly Savings Goals & Events Worksheet, and highlight the month that you would like to have the cash available.

For example, I would highlight the March box for my Easter savings goal. Use the other boxes to write down how much save each month.

Read: How I Saved Money and Paid Cash for My Cabo Vacation

Having “saving buckets” for holiday and event spending will help with overspending and will prepare you with cash, rather than putting these expenses on your credit card.

When creating your savings goals, the more specific you are, the better. It's not enough to say, “I want to save $300 for Christmas.” You need to be able to map out a plan and create action steps that will help you accomplish your goals.

Using these savings goals worksheets will help you get there! I love keeping them in my Budget Binder every month so that I can track my progress. If you want to be financially prepared for the future and create a savings plan with clear actions steps on how to be successful, this savings system is fantastic!

Share876
Pin1K
Share
Tweet3
Email
2K Shares

Filed Under: Tagged With: BUDGETING, HOLIDAYS, SAVE MONEY

Previous article:
« June Budget Monthly Meal Plan
Next article:
Credit Card Disputes: Understanding Your Rights »

Comments

  1. Michelle says

    July 6, 2018 at 7:29 am

    It will not let me sign up for the savings worksheet.

  2. Eliza Reyes says

    July 7, 2018 at 7:14 am

    Enjoyed this post! Was just thinking on how I can start my planning for saving in 2019. JACKPOT! love you blog and all the lovely info! Really helps me with a family of 7!(5 kiddos)

    • kumiko Ehrmantraut says

      July 7, 2018 at 8:50 am

      Eliza, I am so glad you found it helpful!

Hello, I'm Kumiko, but everyone just calls me Miko. Welcome to my blog, The Budget Mom. I am an Accredited Financial Counselor® , and mom to a rambunctious boy. Come along with me as I strive to live a life I love on a budget that I can afford. Read more about me.

RECENT YOUTUBE VIDEO

The Budget Mom

The Budget Mom
It’s time for another Real Life Budget. I asked my readers to submit their REAL information. Real spending, real debt, and real savings goals.

I am taking those real-life numbers and showing you how I would organize and budget that information using my Budget By Paycheck® Method.

If you would like to submit your budget information to possibly be picked for a Real Life Budget that we will show on YouTube, please reach out to budgets@thebudgetmom.com.

Diane is a single mom who is a Database Administrator for an IT Department at a local college. She lives in Queens, NY, and eventually wants to move to a lower-cost of living area in the future. 

Diane submitted her information because she is struggling to organize and tackle all of her larger short-term goals.

CHAPTERS:
00:00 Introduction
02:15 Why & Personal Story
04:20 Income 
04:37 Fixed Expenses
05:48 Variable Expenses
06:31 Debt
07:53 Savings Goals
10:18 Budget By Paycheck Method
14:51 My Recommendations

➡️ HOW I TRACK MY SPENDING: https://bit.ly/3aIe89I
➡️ HOW TO USE A BUDGET CALENDAR: https://bit.ly/2IzF2Vj
➡️ FINDING YOUR WHY: https://bit.ly/3aJUryj
➡️ THE BUDGET MOM'S FINANCIAL FREEDOM STEPS: https://bit.ly/3cfJXsp
➡️ HOW TO GET STARTED WITH THE CASH ENVELOPE METHOD: https://bit.ly/2vQJaO5
➡️ HOW TO CREATE A PLAN OF ATTACK TO PAY OFF DEBT: https://bit.ly/2wDETxF

ABOUT ME

Kumiko Love is a single mom who empowers women everywhere to regain control of their financial lives. An Accredited Financial Counselor with over nine years of experience in the finance industry, she founded The Budget Mom, a community of millions of women on a path to financial fulfillment.

She's also the creator of the wildly popular Live Rich Planner® and Budget by Paycheck® Workbook. Love has been featured on Good Morning America, the Today show, CNN, CBS, ABC and in USA Today, US News, World Report, Huffington Post, Money Magazine, Parents Magazine, the Washington Post, and Real Simple. She lives in Spokane Valley, Washington.

YOU CAN FIND ME AT:

📝 WEBSITE: https://www.thebudgetmom.com
📘 FACEBOOK: https://www.facebook.com/thebudgetmom/
📸 INSTAGRAM: https://www.instagram.com/thebudgetmom/
📌 PINTEREST: https://www.pinterest.com/thebudgetmom/

GET STARTED

➡️Start Here: https://www.thebudgetmom.com/start-here/
➡️Courses: https://courses.thebudgetmom.com/
➡️Free Resources: https://bit.ly/2PDmTHz
➡️GET 10% OFF my popular Budget-by-Paycheck Workbook - Coupon Code TBMYOUTUBE https://bit.ly/3FEdZFp

Soundstripe License Code: LBWMAQPEPWYVFKT3
Load More... Subscribe
Free Resource Library

Recent Posts

  • To Pay Off Debt or Not to Pay Off Debt: The Pros and Cons of Using Home Equity
  • The Secret to Personal Finance I Never Learned About in Business School
  • Don’t Overpay for TV and Internet: How to Shop Around for the Best Deals
  • 4 Simple Tricks to Stick to Your Grocery Budget
  • Celebrate Without Breaking the Bank: How to Save for Special Events

Blog Categories

Amazon Associates Disclosure

The Budget Mom, LLC is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to amazon.com.

  • Cart
  • Shop Policies

Start With My Friday Newsletter

Every Friday I send you a short helpful email with my popular Friday freebie. Join my 500k+ subscribers!

About

  • Home
  • ABOUT TBM
  • Contact
  • Start Here

Important

  • DISCLAIMER
  • PRIVACY POLICY
  • Subscribe

Favorites

  • YouTube
  • Blog
  • Live Rich Planner
  • Budget by Paycheck

Start With My Friday Newsletter

Copyright ©2023, The Budget Mom®
This website contains affiliate links, which means that if you click on a product link, I may receive a commission. This website is a participant in the amazon services llc associates program, an affiliate advertising program where I earn advertising fees by linking to amazon.com.
  • How financially fulfilled are you? Take this 2 minute quiz to get your score!
    Click Here to Start