How to make a savings plan

It’s the final week of our focus on finances as part of the Organised Life project. We’re talking about how to make a savings plan. 

So far, we’ve covered:

Knowing your information

How to set a budget

How to pay off debt

Finally, we’re on to savings. In this post, I’m going to teach you how to make a savings plan. 

Why do I need a savings plan?

First, lets have a think about what savings are for. I think we can categorise them:

Emergency Savings: For when the boiler breaks and needs replacing or when you need an urgent repair on your car. Most experts seem to recommend around £1000 in an immediate-access account. 

Short-term Savings: Savings that you plan on spending within a year. For example, savings for a holiday or Christmas. 

Long-term Savings: This is for the big amounts! You might be saving for a deposit for a house, a wedding or an extension. You might also consider money that you save for your children in this category. Bear in mind, you can keep this money in an account that requires more notice to withdraw money as it also will pay more interest.

I have debts. Should I pay them off or save?

All the experts advise you to pay off your debts first. The interest charged on the debt will outweigh the interest gained on the savings, so definitely pay off your debt first. 

How to make a savings plan

Identify your savings amount. When you set your budget, you should have identified how much you can afford to set aside for saving each month. Take a look at that amount now.

Identify your goals. If you have no savings at all, your first goal is to create a £1000 emergency fund. 

Work out your time scales. If you’ve allocated £100 a month to savings, it will take you 10 months to save £1000. Mark it on a calendar.

Set up a standing order to your savings account(s). This way, you won’t even miss the money! 

On pay-day, save anything you haven’t spent from the previous month. Even if it’s only £5, it will eventually make a difference. 

Shop around, look for deals and save money where you can. There’s always money-saving advice floating around! Money Saving Expert is my go-to, and we review our finances often to see if we can save a little more. 

Are you a saver? How do you organise your savings?



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  • We really need to look at our savings as they are not earning what they should. We have our house equity squirrelled away for when we will again need it and are pondering whether to get a little rental property instead. Mich x

  • I need to do this. A savings plan would help us become more focussed on our long-term goals. We also need to get putting away money into savings at the end of each month, even if it is just a couple of pounds. Like you say those pounds can make a difference.