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!