We all have ambitions for the future, and most of these objectives require out-of-pocket expenses. Many people struggle with setting aside the necessary amount of money required to fund these goals. According to the team at First State Bank in Russellville, AR, the key to reaching a savings goal is planning. Below, the banking professionals offer their go-to three-step plan for helping individuals create and implement a successful savings plan.

3 Steps to Create a Successful Savings Plan

1. Determine Your Budget

Before you can create a savings plan, you need to determine your current budget. Compare your monthly net income to your expenses including utilities, mortgage or rent, and auto loans. You also need to remember to set aside money for entertainment and hobby-based activities you enjoy. This process allows you to see how much you have left to work with each month, and it shows how you could adjust your spending habits.

2. Set a Realistic Goal

Now you know the monthly amount that you're working with, you need to determine how much you want to save and how quickly you want to get there. For instance, if you want to save for a down payment on a home, you'll need to determine the approximate amount that you'll need and when you want to have it. It's important you set realistic expectations so that you can feasibly achieve your goal. So if you want to put a sizeable payment down, you may need to lengthen your timeline to accommodate the amount; but if you plan to put money down sooner than later, you may need to adjust your goal to reflect reasonable savings within your desired amount of time.

3. Lay Out a Plan of Action

Finally, translate the information you found out in the first two steps into a concrete plan of action. Take your goal amount and divide it by the number of months in your timeline to determine how much you need to put in your savings account every month. From here, you can then decide if you'll pull the total out of one particular pay period or break it up over the full month. Once you've figured out your plan, you may want to consider setting up automatic transfers to your savings to prevent falling behind.

Creating a plan can help you reach your financial goals, and the professionals at First State Bank can help. Since 1934, the locally owned and operated bank has put their River Valley customers first. From savings and checking accounts to loans and money markets, their team can help you choose the best banking options based on your goals. Take a closer look at their personal account specialties online, or speak with a knowledgeable member of the team by calling (479) 498-2400.