Make a savings plan
What would you like to do, where would you like to go, what would you like to have paid for in 12 months?
I want a month in Spain… now how do I get there?
So once I had my overview of numbers coming in and out from the family finances each month, my next step was to create some kind of savings plan.
As a boy, I never really understood the idea or concept of saving. My brother was brilliant at it, but me, as soon as it came in, I bought a CD or tape and it was gone just as soon as it arrived!
Now though, my perspective is different; I have responsibilities, I have goals, I have kids.
I read a superb book once (and many times since) called Profit First. It helps business owners manage business finance but the concept for me is quite similar in a personal setting.
I partition a small % each month of my gross family income and hide it away.
This contributes to family savings but also family treats, holidays and the like.
This small % contribution can easily be found by addressing our monthly expenses so in my case it didn’t require earning more as such to save for things.
It’s incredibly refreshing and I find it quite comforting to know the money I’m spending on treats or holidays or putting away for a rainy day is there and budgeted for.
I now set myself targets and plans to support my family finances and expenditure, as well as the business.
