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How to implement a spending savings plan

Estimated time: 30 minutes
Level of difficulty: easy

Why is this important?

An important part of a spending/savings plan is the saving. Once the plan is developed, following it boils down to saving and keeping expenses as close as possible to the Planned Amount. Using the spending savings plan guides money decisions so that farm and family goals can be achieved.

Steps to take

1. Save the monthly amount needed.

Each month save the monthly amount needed to achieve your goal(s). Also, each month, save the monthly amount needed for each periodic expense so that when the periodic expense occurs, the money will be available.

2. Setup a system.

Set up a system to pay yourself first and then use the rest for current needs. A separate savings account, automatic deposit etc all work great.

3. Continue to track expenses.

Continue to track your expenses by saving receipts or by recording weekly expenses on a blank “Monthly Expense Chart” (page 5). At the end of the month, total each category and compare this total with the “Planned Amount” for the same category.

4. Make adjustments.

Make adjustments as you go in an effort to keep savings and expenses equal to income.

5. Re-evaluate if necessary.

If this is not possible, re-evaluate your plan.