Savings is not a one-day get-rich scheme. It takes discipline, planning, and commitment. When I first started, I was broke, living paycheck to paycheck, and had no financial plan. But one day, I decided that enough was enough. I needed to take control of my finances, and the first step was understanding where my money was going.
Step 1: Tracking My Expenses
The first thing I did was create a simple Excel sheet to track my income, expenses, and debt payments. At that time, my only source of income was my paycheck, so I started by listing all my expenses. After deducting my expenses, I realized I had very little left, but I also saw how much I was spending on unnecessary things. This was my wake-up call.
Step 2: Creating a Budget
I made a plan to set a budget. I allocated specific amounts for different categories and committed to sticking to them. Here’s an example of how I broke down my budget:
- Groceries: $300 per fortnight
- Entertainment: $100 per fortnight
- Fuel: $100 per fortnight
By setting limits, I made sure that I wasn’t overspending in areas that weren’t essential.
Step 3: Automating My Savings
To make saving easier, I opened a savings account with another bank. I then informed my accounts department at work to deposit 25% of my salary directly into that account. To make it even more effective, I deleted the banking app for this account and only used online banking to check my balance occasionally. This way, I wasn’t tempted to touch it.
Step 4: Sticking to the Plan
Every fortnight, 25% of my wages went straight into my savings, untouched. This became my emergency fund. Everything else in my checking account was used for our day to day expenses. The amount you save doesn’t have to be big—even starting with $10 per week makes a difference. The key is consistency and not touching it.
Step 5: Seeing the Results
After a few months, I checked my balance and was amazed at how much I had saved. It felt so rewarding to see my financial security growing.
If you want to start your savings journey, you can use the simple Excel sheet I created for my budgeting and planning. Download it here:
Remember, saving is a long-term commitment. The sooner you start, the better your future will be!