Build Your Own 52-Week Savings Plan
I shamelessly participated in the traditional financial blog January epidemic of sending out 52-week savings plan sheets to my readers.
I decided upon a savings plan that doubles the amount you save every week from a very small base, so in my case, you started by investing 50p, then £1, then £1.50, until the 52nd week when you saved £26, and you’d have a box, or a jar, with £689 in it.
This savings plan post proved a bit more popular than average, in part because the concept is both appealing and approachable.
That’s a decent chunk of change that allows you to do something substantial, and the idea behind the plan is that it’s small enough an effort that anyone can sign on and stick to it until the end.
The reason everyone in this field suggests this is because it works. It’s something simple, tangible, that anyone can do.
But it’s a bit prescriptive. What if you really needed to save £827 to buy your Spring holiday trip for next year? Maybe my £689 plan isn’t all that useful to you…
Since the math is really simple, I thought I’d review my post from last week and go one better, letting you set your own target and print out your own savings sheet, based on the target and the method you choose.
How It Works
You choose how much you want to save by the end of the year and put that in the first colored cell in the spreadsheet.
In the second colored cell you choose the method you want to use to calculate the individual payments. You have three choices:
Flat Amount just divides the total savings by 52, giving you an equal amount to save every week for the whole year.
Constant Growth starts with a small amount and increases the amount you pay every week by that amount, exactly like in the sheet I made last week.
Slower Growth is for people who find the last few payments a little too high. It starts with a more aggressive payment at the beginning and spreads the effort over the entire year, but still making it easier at the beginning of the year than at the end.
Now you don’t have to do what some random blogger in the interweb suggests – you can build your own savings plan based on your own needs.
Access the Spreadsheet Here
It’s on Google Sheets and you can get a copy here :