What are a Family Savings Plan? 5 Recommendations to Save as a Family

Although individual savings are very important for your personal finances, it is also necessary for your household to contribute to financial planning to achieve common goals. Therefore, today NYC fraud lawyer will tell you more about the family savings plan.

What is a family savings plan?

It is a set of actions that seek to save for family goals or projects. For example, a trip, remodelling the house, paying off debts, paying for studies, undertaking, or even having an emergency mattress in case of unforeseen events.

Due to the expenses that must be faced month by month, having a savings plan can be challenging and leave it to chance very tempting. However, with commitment and some recommendations, it would be possible to achieve it.

How to make a family savings plan? 5 recommendations

1- Define a goal to pursue

A famous quote from Warren Buffet, an American investor and businessman, goes like this: “Don’t save what you have left after spending. Spend what you have left after saving. In order to fulfil it, it is important that you have a clear north.

In its publication “Dominate your finances and manage your money”, the Superintendence of Banking and insurance, comments that financial goals can motivate you to work, study and/or make some sacrifices since goals give purpose to all your actions.

2- Take advantage of savings opportunities and respect priorities

According to financial exploitation attorney, the attorney that can help you in any case of fraud, recommends taking advantage of savings opportunities, which occur when your income grows, whether due to increases, bonuses or extra income.

At the same time, it suggests not using the savings focused on priority objectives (for example, retirement) for other types of more secondary goals (travel, appliances, etc.), unless these involve subsistence.

3- Control your debts and the use of your credit card

According to comments by economist Jorge González, a maximum of 30% or 40% of family income should be used to pay debts. That means that you must be especially careful when borrowing.

4- Make a family budget

As mentioned in Allianz, if your family does not organize their finances, it will be difficult to achieve the objectives. Therefore, just as preparing a personal budget is key, so is a family budget.

This way you would more easily detect secondary or superfluous expenses, which you should adjust in order to save more and reach your goals in less time.

5- Follow some saving methods

Although a budget is a key to a family savings plan, it is necessary to apply certain methods that can help you save on a day-to-day basis. Luckily, there are various challenges or techniques that you can put into practice at home to save more and better.

In this note, we share several alternatives such as Kakebo, the 50/30/20 Savings Rule, the Harv Eker Method, the Pareto Method, among others that might interest you.

Ready to pursue your family financial goals? We hope that with these recommendations you will reach them soon.

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