How To Build A Bulletproof Savings Plan

Hello Stoic Investors,

Today I want to talk about saving.

Saving money is not easy.

The average American family can barely make it through the month.

Yet alone save a big chunk of their income.

Do you want data to back that up?

A few months ago, the Paycheck-to-Paycheck Report, a LendingClub and PYMNTS collaboration, revealed

that 60% of American adults live paycheck to paycheck.

And this living “on the edge” is the number one reason for stress.

If you are lucky enough to earn a high salary, you might think that this doesn’t apply to you.

Let me throw some more data your way.

Of those, living paycheck to paycheck, four in ten are considered high-income earners…

My aim here is not to frighten you.

I want to inspire you to be a better saver.

But inspiration alone doesn’t do much.

You need to act.

And this is where you start.

A bulletproof savings plan

I don’t want to waste any words. Let’s dive right into it.

Step 1: Set Clear Goals

Start by defining your financial goals. Whether it's saving for a down payment on a house, an emergency fund, or a dream vacation, having specific targets in mind will motivate you to save. Write down your goals and set a timeline for achieving them. Remember to be realistic and break them into smaller, achievable milestones.

Step 2: Track Your Expenses

To build an effective savings plan, you need to know where your money is going. Track your expenses for a month, categorize them, and identify areas where you can cut back. Consider using budgeting apps or spreadsheets to make it easier. Small changes, like eating out less or canceling unused subscriptions, can add up to big savings.

Step 3: Automate Your Savings

Make saving a habit by automating it. Set up automatic transfers from your checking account to a separate savings account on payday. This way, you won't be tempted to spend that money, and your savings will grow steadily without much effort.

Step 4: Embrace the Power of "No"

This is a big one. Saving money requires discipline. Learn to say "no" to unnecessary expenses that don't align with your goals. Challenge yourself to find alternative ways to enjoy life without breaking the bank. For example, instead of going out for dinner, invite friends over for a potluck or explore free community events.

Step 5: Think Outside the Box

To supercharge your savings, think creatively. Look for unconventional ways to save money, such as negotiating bills, buying in bulk, or swapping items with friends. Consider exploring side hustles or leveraging your skills for extra income. You'll be surprised at how much you can save by taking advantage of opportunities that others might overlook.

It won’t be easy.

But let me inspire you once more.

"Nothing worth doing is easy." - Theodore Roosevelt

So, note down these points and start saving today:

1. 60% of American adults live paycheck to paycheck
2. Every savings plan needs a clear goal
3. Learning to say "no" to unnecessary expenses is a powerful tool