How to Create a Savings Plan You Can Actually Stick To

This page contains affiliate links. If you click on a link and make a purchase, I may earn a small commission. Your support helps keep this website running

Creating a savings plan is one thing, but sticking to it is where many people struggle. A solid plan involves setting realistic goals, tracking your progress, and adjusting your strategy as needed. Here's how you can create a savings plan that you can actually stick to.

1. Set Clear and Specific Goals

The first step in creating a savings plan is setting clear and specific goals. Instead of just saying "I want to save money," define exactly how much you need to save and by when. For example, "I want to save $1,000 for an emergency fund in the next 6 months."

2. Break Goals into Smaller, Achievable Milestones

Once you have your larger savings goal, break it down into smaller, manageable milestones. This will help you stay motivated as you see your progress. For instance, saving $100 a month for 10 months to reach your $1,000 goal is much more achievable.

3. Create a Realistic Budget

A budget is crucial for staying on track with your savings plan. Tools like YNAB (You Need A Budget) can help you set up a budget that works with your income and expenses. By tracking your spending, you’ll ensure you’re allocating enough money toward your savings goal each month.
Start budgeting with YNAB now

4. Automate Your Savings

One of the best ways to ensure you stick to your savings plan is to automate it. Apps like Acorns automatically round up your purchases and save the spare change. You can also set up automatic transfers from your checking account to your savings account.
Sign up for Acorns and start saving automatically

5. Track Your Progress

Regularly track your progress to ensure you're on target. This will help you stay motivated and allow you to make adjustments if necessary. If you’re using YNAB, it makes tracking easy by syncing your bank accounts and categorizing your transactions.

6. Adjust Your Plan If Necessary

If life throws you a curveball, such as unexpected expenses, don’t be afraid to adjust your savings plan. Flexibility is key to sticking with any plan long-term.

By setting clear goals, breaking them into milestones, and using tools like YNAB and Acorns, you can create a savings plan you can stick to. Remember, consistency is the key to success.