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Create a savings plan to reach your goals

Originally, Sam listed that he wanted:

What do I have to have?What do I sort of want?
A new school bookto go to the movies
A new bikebuy ice cream with lunch

Sam knows now that if can not spend as much money on what he “sort of” wants he’ll have more money left at the end of the week for what he really wants, or has to have.

Looking back on the week, Sam noticed that if he cut out his video game, he would have had a lot more money left over…

Fixed ExpensesVariable Expenses
  Candy $3
Bus Ride $3  
  Video Game $35
TOTAL: $3 TOTAL: $39

Once Sam looked at his chart for the week he realized that if he looked carefully each week at what he wants, he might be able to lower his total expenses.

Besides cutting expenses, Sam thought long and hard and realized that if he did more to help out… he might make more money and increase his income…

Income
Allowance $20
Birthday Money $15
Helping Out $5

Sam was now on a roll. He knew that he would have more money each week if he could cut his expenses and increase his income, but what about savings?

Sam read somewhere that if he could set money aside each week; he could use it toward his goals of buying a new book and finally getting that new bike!!

But how would he keep track of that on his chart?

Well, at the end of the week Sam had $1 left over. Sam made a chart for the start of the next week. The first thing he did was put that $1 into a new savings column.

SavingsFixed IncomeVariable IncomeFixed ExpensesVariable Expenses
$1 Allowance $20   Bus Ride $3  

Sam knew he was on to something big. Rather than spending all his money each week, he could pay himself through savings. So long as he didn’t spend his savings from one week to the next.

It’s up to you to determine your own savings plan to reach your goals. Remember to ask yourself, how much money can I save each week? Keep in mind your income and your expenditures. The more money you are able to save, the more money you’ll have, and you’ll be able to reach your goals faster!!

Contiune on to Step 5: Reach Your Goals