There are a lot of great reasons to save: you might want a nicer car, a bigger home, a honeymoon in Italy -- or maybe you want to pay off your student loans and have a decent retirement!
Saving is more than just what's left over at the end of the month. It's an essential component of your budget.
This budget worksheet will help you list your goals, compare those goals with how much you can realistically budget towards savings, and rank your priorities.
Make The Most of This Sheet
You can either use this worksheet alone to map out your goals, or you can use it along with the other budget worksheets to create a complete budget. I highly recommend using this worksheet along with the budget worksheet for income and necessities and the budget worksheet for discretionary spending.
To figure out how much you want to save each month for a certain goal, first decide how much you'd like to save in total. Decide when your deadline will be. Divide your goal by the number of months until your deadline to determine how much you should save each month.
For example, if you want to have $12,000 saved for a wedding within one year, you'll need to save $1,000 per month.
At the end of the month, write down how much you actually saved, so you can compare it to your goals.Short-Term / Emergency Fund Goals
This is savings you need to rely on when life's emergencies arise.
|Illness or Accident|
|In Case of a Layoff|
|Cushion to Prevent Overdrafts|
Mid-Term and Non-Emergency Goals
These goals mostly fall within a one to 10 year timespan.
For some people these goals may have a time horizon longer than 10 years, although that is not the case for everyone. Adjust these goals into the mid-term category as needed.
|Buying a Second Home|
If your goals are higher than the amount that you can save, you have three options:
- Cut your spending
- Reduce the amount of your goals
- Extend the deadline of your goals
If your savings rate exceeds your goals, congratulations! Consider adding a new goal or accelerating your current goals.