Saving is an essential aspect of achieving one’s financial goals. We occasionally have to save to get some financial deals done. You need to buy a car; you must save. You need to build a house; you must save. Hardly any capital financial project doesn’t require you to save to achieve them.
Your saving pattern is heavily dependent on your style of income. If you are the type that is on a monthly payroll, then you likely prefer to save monthly. But if you are a freelancer or get paid with no specific pattern, you may extract money to save from your account balance daily.
There are other factors you must consider before choosing a savings schedule. This article will guide your choice of which saving plan is best for you.
Factors to Consider When Choosing a Savings Plan
There are a lot of things that determine your pattern of saving. For instance, if you are saving to buy a new car, you may want to have a monthly plan for your savings. When you receive your salary, diverting it straight to your savings account is best. But when you have to pay a bill or your house rent in some weeks or months, a daily plan may be the best for you. There are many other factors that you should consider before choosing a savings plan. Below are some factors.
1. Your income
How often you get paid should be considered when choosing a pattern for your savings. If you are on a monthly payment plan, you may prefer to take out your savings from your salary so it fits into a monthly savings schedule. So anytime you receive your salary, you will divert some of it into your savings.
If you don’t have a definite payment schedule, you can consider a daily savings plan as long as your account balance is acceptable. The amount you set to be saving daily will be deducted from your account balance on a daily basis.
2. Your financial goal
Your target, or the reason for your savings, is another factor that determines what payment plan you should go with. For instance, someone looking to buy a car will most likely go with a monthly savings plan. With a monthly savings plan, his savings can be more definite and targeted.
For someone saving up for their house rent, they might prefer to do a daily savings plan to reach a target by the end of their rental period. If your yearly rent is ₦800,000, you may divide it by the number of days a year, which is about ₦2,200 daily. If you set a daily savings of ₦2,2oo, you can pay your house rent when it is due.
3. Your Expenses
Your expenses may also determine which plan you should go for. Some may be comfortable deducting money from their account balance daily without disturbing their expenses. At the same time, some will prefer that the funds be deducted monthly so they won’t affect their monthly expenses. You should be able to determine which plan works best for your expenses.
4. Your budget
People budget their spending. Some people work with a monthly budget, while some work with a weekly or daily budget. The type of budget you work with will determine which savings plan works best for you.
If you are the type that works with a monthly budget, a monthly savings plan may be the best fit for you. You can divert funds into your savings account as you make your monthly budget. But if you are the type that works with a smaller budget, a daily savings plan might be the best fit for you.
5. Savings period
The period you are saving for will also determine your best savings plan. If you are saving for an extended period, say three years, you can consider a monthly savings plan. But if you are saving for a few months, a daily savings plan may be best for you.
We all save to achieve some of our financial goals, but our income schedules and other factors are different, so we may have to work with different savings plans. Some prefer to save monthly, while others prefer a daily schedule. Whichever way one goes, they will get the result.
It is best to make the right choice when choosing a savings plan; which is why you must consider all factors that may affect your decision. Earnipay Savings makes it easy for you. You can decide to choose any savings plan, depending on your decision. You only need to download the app and locate Savings to get started.