How To Develop A Savings Plan in 3 Easy Steps: Step 3


Tony Robbins said, “A real decision is measured by the fact that you’ve taken a new action. If there’s no action, you haven’t truly decided.” We’re wrapping up our series on How to Develop a Savings Plan. If you’ve decided that creating a savings plan is the right step for you, then it’s time to act.

Step Three: Organize and Implement

You can be diligent with setting your savings goals (Step One) and deciding on the amount and frequency of your savings (Step Two), but all is wasted if you don’t organize your savings and implement your plan.

Organize Your Budget and Your Bank

Your savings goals have to be reflected in your budget and in your bank account or you will simply fail to save according to your desires. Let’s look at your budget first.

Organize the Budget: Remember the list of short term and long term savings goals which you wrote down in step one? There has to be a line item on your budget that corresponds to each goal. And each month when you review and set the budget, you need to consistently be aware of your goals and move the money accordingly to reach those goals.

I can’t stress this enough: You will not reach your financial goals unless they are reflected in your monthly budget. Now let’s talk about how to organize your bank.

Organize the Bank: This is where it gets fun. You bank accounts need to be an online reflection of your budget. This means you need to have different accounts set up for your different savings goals.

Here is how we have chosen to do this. We have 5 accounts, and each time we get paid (via direct deposit into our Monthly Expenses account) we move money into the other accounts according to the following percentages (our percentages aren’t exactly like this but very close).

You’ll notice that there is no percentage for the Short Term Savings account. The reason is because that account consists of all of the non-monthly expenses in our budget, such as car insurance which is paid annually, and home maintenance. We simply add all of these items up, and transfer that amount from our checking account into the Short Term Savings Account.

Some banks will require a monthly fee to open additional accounts. We were able to get all five accounts opened for free due to a combination of having direct deposit set up into one of the checking accounts along with maintaining a certain minimum balance in each account.

BEWARE: As your learn to manage your money, you will find that, almost magically, you have more of it. The temptation will be to increase your spending. We have fallen into this trap before and it will keep you broke. Keep your lifestyle simple, and always remember that your goal is to decrease the percentage needed for the monthly expenses column and increase it in all of the other columns.       


So far you’ve been taking little action steps along the way. But now you need to work diligently to get steps one through three in place before your next paycheck. Put this into your schedule this week or it won’t happen. Successful people take action..average people make excuses.

Committed to your success,


Comments: Let us know if you took action! How has the savings plan inspired you?

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