Strategies for planning your savings

Eight handy tips
Saving money every month is possible through a combination of effort and good planning. Once you start, it is important to identify how much you can save based on your income. At BBVA, we are aware of how difficult it can be to meet your savings goal, especially now when interest rates are so low. Therefore, our aim is to help people with their medium- or long-term savings goals who want to plan their savings and enjoy their money in the future.
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Keys to planning your savings

The first key to planning your savings is setting a goal. You must decide if the money is going towards your retirement, a house, your children, or a financial cushion for the future. Identifying the purpose of saving your money will help you to determine how much time and money you need to invest. Furthermore, it is critical to set a pace of saving that is realistic for you. If you set a goal, make sure you meet your deadlines!

Once you have decided on a goal, you need to create a budget. This budget should indicate your savings approach. This is a key step to taking control of your finances. Creating a budget also helps you to determine how to maximize your money. However, this doesn't mean that you can't treat yourself to certain things from time to time. However, sometimes you may have to tighten your belt a little!

You can identify your savings target in your budget as a compulsory expenditure. This way, you know that a certain amount of money will be set aside for this savings target. Some guidelines recommend saving 20% of your income. However, if this is not feasible, simply set a percentage to suit your needs. Please note that once you set a savings goal, it tends to be the superfluous expenses that prevent you from achieving it.

Creating a budget is very difficult if you do not know your available balance. Having a clear picture of your income and general expenses will help you to establish priorities when planning your savings. This is where the BBVA app can really help you stay on top of your monthly finances It is also important to realize that, while your income will be the same each month, your expenses tend to fluctuate. Beware of unforeseen expenses as they can tip the scales the wrong way!

Review your savings goal regularly

Once you have planned your savings and started to build up a small financial cushion, don't just sit back and relax. There's more work to be done, so keep your eye on the ball. It is advisable to review your savings goal as you might need to make modifications to your initial budget. You should review your savings goal and budget every few months to eliminate anything that could jeopardize the balance between income and expenses.

It is also important to make the most of your savings. Simply putting your money away and forgetting about it will make it harder to reach your goal. Most experts recommend putting your money into long-term investments because, although you can expect a lower return, your money will be safer. Whatever product you choose, experts recommend getting as much information as possible to avoid offers with hidden risks.

If you have any debts, you can also use the money you save to pay them off. As you pay off your debts, you will gradually build up more money than before as you now have fewer expenditure obligations.

Finally, it is advisable to set aside some money as an emergency fund. When you plan your savings, you never know what unexpected costs you may have to bear in the future. As a result, it is important to have cash available so that, if anything happens, your savings plan is not disrupted.

 

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Tools to help you manage your accounts

Remember that planning your savings and creating a budget is much easier with an app like BBVA Bconomy. This app lets you analyze your spending in detail and discover how to reduce it. It also helps you to create budgets for categories in which you want to spend less. You will receive notifications when you approach or exceed your spending limit.

What's more, the BBVA Set up your account service features simple rules to help you manage your accounts automatically. You can set minimum and maximum account balance limits, round off your card payments (and save the difference in cents), and set savings guidelines based on your budgets, paycheck, or month-end balance. What's more, this service is completely free to use.

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