5 Ways to Plan and Calculate Your Savings


I am aware that Pandemic taught us many innovative life tips and tactics. Many of you probably started new businesses, took up new interests like taking piano lessons or learning to bake and cook, and some of you may have even become the next big thing in live streaming. By distributing all of my content throughout all of my channels, I was able to promote my movie reviews more widely. But the way we spend our hard-earned money and save money for the future is what unites us amid lockdowns and pandemics.

Speaking of savings, I know most of you probably new that I am also a finance professional and I might have shared a thing or two about smart spending and saving. But today, I want to summarize it in a very cohesive points so that you may follow and live within your means.

1. Budget Your Shopping ahead

Before the pandemic, we went to shopping malls to relax and buy things for ourselves. And a significant percentage of our costs go toward shopping. Whether it’s purchasing that amazing shirt fix or acquiring the accessories to go with our outfit for the day. But lockdown made us think differently. I advise those who are still learning to do it to make a plan. Determine your monthly needs. Simply purchase what you truly require if you need garments. In order to avoid buying anything off your list, decide in advance how much you are willing to spend.

Savings Calculator

2. Know Your Fixed Costs

Fixed Cost is an expense that is unavoidable for a period of time. And it pays to know your are aware of this and monitoring those at the same time. Examples of these are phone bills, rent, electricity bills and the likes. Once you calculate how much your fixed costs are, that’s where you draw the line in spending. Those amount are non negotiable expenses that needs funding. If you earn a certain amount then the way to see your revenues should prioritize these expenses. And the rest should be your extra money for your other errands. Knowing your fixed costs help you avoid owing money and over budget for a period of time.

3. Use Savings Calculator

Some of you might probably have know how to add, divide and conquer with how you deal with your savings and expenses. For me, I suggest to use SavingsCalculator.Org. This one actually helped me see what is my current money’s potential in a straight line and cumulative way. As you are aware that savings is necessary now to prepare for the future, it is also essential to know if its worth saving on banks or investing your money to yield high interest. For instance, I use this as an example.

savingsCalculator

Savings Calculator

From this calculation, I can see that after the end of 5 years, I will have this amount of money, if I follow the regular savings I set. This will give you more overview on how will you manage your current spending and setting aside money for your planned savings. And Savings Calculator site is really a helpful tool for everyone.

4. Sell Your Extra Stuff

Ofcourse, as we get back to the normal ways again, we realized what really matters and we already assessed things that are under “want” vs “need” and surprisingly, there are a lot of interesting possessions we have that we don’t really need. The catch is, others might need it. So it is okay to sell your pre-loved clothes, or hobbies to your friends or in the community. You will be surprised how big you will generate from that bazaar.

Savings Calculator selling

My funny experience during my early days of selling my items is that I initially thought no one will buy my stuff but to my surprise, those items that I don’t really need are very in demand. That inspired me to sell more! That is extra savings right there!

5. Know Your Interest Rates and fees.

And finally, interest rates and fees. I’m talking about credit card rates when you missed your due dates, fees when you withdraw on ATM or bank charges when we transfer money from the bank. If you’re planning on doing transactions that would cost you let’s say 1 or 2 dollars, make it a habit to do it on schedule. These are small things that we mistakenly thought is fine but the overall impact when we sum it up is quite big. Service charges and fees, when summarize is quite big. If you need a small time loan make sure you know your rates. Or if you are a parent and planning to save for college for your kids, a good interest and savings calculator will do. I suggest you check your options too at College Savings Calculator.

Savings Calculator College

I know there are a lot more ways to calculate your savings but i hope these are enough to inspire you to plan anew with your hard earned money. I don’t have specifics on the amount for you to set aside but according to Savings Calculator, a good rule of thumb is to try to save 20% of your net (after-tax) income each month. As part of the 50/30/20 rule it states you should spend a maximum of 50% of your check on life’s necessities, up to 30% on discretionary spending & save at least 20% of your paycheck.

That is what I like about having a handy Savings Calculator online. It gives me an updated market rate and up to date way of computing for my interests and annual fund that includes overview of inflation rate impact on our money.

That is all I have to say for now. I hope that, as pandemic intended, I was able to assist you in achieving your objectives. I am currently making plans to buy a larger property in the future, so anything that calculates savings has my full support.


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rodmagaru

Rod Magaru is an award winning content creator based in the Philippines. He blogs about lifestyle and Entertainment and is known for breaking news on new projects in TV, Movies and reviews of products, hotels and awesome travel tips. He is also a Social media strategist, accepts hosting & speaking engagement. For inquiries email [email protected]