Earlier this year I shared a three-step “foolproof” plan to save money in 2017. Full disclosure – it wasn’t entirely foolproof for me. As embarrassing as that is to admit, I can take some joy in the fact that it worked for a few people who tried it.
While I didn’t save as much as I wanted to, I was able to identify the loopholes in my personal implementation of the plan. Here’s what I learnt:
- Make space for the unexpected
I’ll start with step 1 in my original plan – Setting a Realistic Goal. I used the spreadsheet to budget all my expenses and determine how much I could save this year. However, I now realize that I did not allow space for unforeseen expenses (for example, the pricing of my utilities increased), emergencies, damages/repairs or unexpected travel.My plan was super rigid and, seeing that I’m a go-with-the-flow kind of person, the two didn’t work well together.
Lesson Learnt: Allow enough buffer for life changes. Lifestyle changes — like getting addicted to kickboxing for a workout — certainly impacted my savings.
- Savings accounts are good, as long as….
I created two savings accounts – one with Acorns, an app that automatically withdraws and invests spare change from my expenditures. The other, a savings account with a bank, which was set up for manual transfers. They both worked well for me during the first quarter, but over time I stopped manually transferring money and just allowed the transfers to automatically be deducted from my account.
Lesson Learnt: Automate all savings transfers if you’re a go-with-the-flow kind of person!
- Keep the secret sauce a secret!
The secret sauce to my plan was “NOT” to dip into my savings, and boy did I ignore that rule! Since I had a very rigid plan, I found myself constantly dipping into my savings… almost every month. When I wasn’t doing that, I was blocking all transfers to my savings account so that the money would be available for immediate use. The only upside to all of this was that I wasn’t turning to my credit cards for the extra expenditure and was using the money that I saved.
Lesson Learnt: Forget your passwords, delete those apps, make it difficult to withdraw from your savings… or enroll in the army to cultivate a rigorous level of discipline!
So there it is, everything I’d do differently next time around!
Looking back, I’ve had a great year. I tried a bunch of new things, achieved some personal goals and experienced growth in leaps and bounds. While not everything went as planned, I’m now raring to go back to the drawing board to improve my savings plan for 2018.
How did your year of savings go? Do leave a comment below!
Creative writer. Part-time engineer. Marketing professional. Swetha has an MBA from the University at Buffalo. She manages Oxigen’s presence online, providing value to NRIs and driving sales along the way. When not working, she’s usually creating things – either craft, writing or food.