How to Plan for Saving Money Each Month

What are your plans for your retirement years? According to the 2022 Transamerica Retirement Survey, the top two retirement goals are “traveling” and “spending more time with family and friends.” But to reach those goals, you’ll need to know how to plan for saving money.

Unfortunately, over half (55%) of Americans admit they’re behind in their retirement savings. According to a survey from Bankrate, more than a third (35%) claim to be “significantly behind.” If this sounds familiar, don’t panic.

The following tips can help you learn how to plan for saving money every month.

1. Figure Out How Much Money You Need to Live Each Month

Start by calculating your personal cost of living. To do so, you’ll need to add up your fixed, variable, and discretionary expenses.

Fixed Expenses

Fixed expenses are necessary costs that don’t change from month to month. Common examples of fixed expenses are:

• Rent or mortgage
• Car payments
• Phone/cable bills
• Insurance premiums
• Property taxes
• Student loans or other debt payments