How to Start Saving for Your Future Expenses

Financial Responsibility is a Key to Happiness after Retirement

An assortment of Euro coins and notes; photo courtesy da Bruger Twid

Copyright © 2012 Michelle Ryan; All rights reserved; content may not be copied, rewritten, or republished without author’s written permission.


Having a tension free and financially strong future with fewer hurdles is the ultimate goal for everyone. Is this possible? If yes, then how?

The answer is yes and it is possible through your own actions to decide your future financial status, because each and every action that you perform reflects in your budget plan that will change from time to time.

However, this impact can be modified into a positive one through having a wise saving plan that will offer you a safe and secure future. Here are some ideas that can be followed to start saving for your future expenses:

  • Primary Saving Plan Steps:

    There are four steps that are considered to be the primary aspects for saving. They are:

    1. Calculating Financial Needs: In this step, the calculations are done to try and predict your future expenses, such as your child’s education, retirement plan, health expenses, earning assets etc.

      All the future goals will be included in this stage in order to know an accurate approximation of the money needed.

    2. Planning: As the name specifies, it is this stage where you will plan the different ways through which you can accumulate the money required and the assets that will help in meeting your needs.

    3. Acting: This is a vital stage where you execute the plan and keep your thoughts in action that drives towards the goal. The saving of the money will be implemented in full to meet the needs of you and your family.

    4. Reassessing: Reassessing your financial situation frequently is just as important as your actual action plan.

      You need to evaluate your progress every three months to see if your financial plan needs to be modified. This modification is done to match the global economic changes that have occurred in the industry.

      Think of this step as being analogous to re-balancing your 401k or your stock portfolio on a periodic basis.

  • Financial Investments:

    The investments that you make will decide your future; and that completely relies on the state of the global economy.

    This may multiply your principle amount, or sometimes keep it the same, and that is acceptable to some extent; but at times it can result in loss that can neither be expected nor accepted.

    In order to avoid such risks, a financial expert’s advice should be taken; they are capable of analyzing future financial changes and plan your financial decisions accordingly.

  • Set Up an Emergency Fund:

    It is impossible for you to know for certain what will happen to you or your finances in the future; your fortune could get diverted in any direction.

    Any financial emergency can be faced by anyone, such as a medical emergency, job loss, damage of assets, unexpected bills, debts repayment, etc. In such situations the emergency fund that you maintain acts as a helping hand to support you in meeting your expenses.

    However, if it is insufficient, then you can opt for payday loans; because payday loans are capable of assuring instant cash assistance to meet unexpected expenses.

About the Author:

My name is Michelle Ryan. I am a tech writer from Manchester, UK. I am into Finance and Business. Catch me @financeport

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