Find a Workable Savings Plan

For a workable plan, four steps are necessary:

1. Add up your total income, including any funds you receive in addition to your earnings.
2. Figure out your total fixed expenses such as rent or mortgage, insurance premiums or car payments.
3. Provide for a savings fund with emergencies and special accommodations (vacation, schooling etc.) in mind.
4. Estimate how much you need for day to day living expenses.

While these steps are listed in sequence, consider all of them for a broader view to conclude your final plan. You may need to do some adjusting of the amount in each step until you have what you feel is a satisfactory plan.