How to draw up a savings plan?

Question

Creating a savings plan is one of the most powerful financial decisions you can make—no matter your income level. A well-structured savings plan helps you stay disciplined, prepare for emergencies, achieve long-term goals, and avoid unnecessary debt. Whether you’re saving for a new car, rent, business capital, or long-term investments, this guide will walk you through how to draw up a savings plan that actually works.

1. Define Your Financial Goals Clearly

Every good savings plan begins with a goal. Your goals should be:

Specific (What exactly are you saving for?)
Measurable (How much will it cost?)
Time-bound (When do you want to achieve it?)

Examples of Clear Savings Goals

Save ₦500,000 in 10 months for business startup costs.
Build an ₦800,000 emergency fund in 1 year.
Save ₦1 million for rent and relocation by December.

When your goals are clear, you stay motivated and focused.

2. Assess Your Current Financial Situation

Before saving, you must know where you stand financially.

Check:

✔ Your total monthly income
✔ Your fixed expenses (rent, transport, food, bills)
✔ Your variable expenses (entertainment, eating out, data)
✔ Any debts you currently owe

This helps you determine how much you can realistically save.

3. Calculate How Much You Can Save Monthly

Once you know your income vs. expenses, subtract your expenses from your income.

Formula:
Savings = Income – Expenses

If the amount left is too small, you may need to adjust:

Cut unnecessary expenses
Switch to cheaper alternatives
Reduce luxuries
Automate bill tracking

You can also use tools like the Viral Savings Challenge Calculator to estimate how much you can save weekly or monthly:

👉 https://savemoneycalculator.com/viral-savings-challenge-calculator/

4. Choose a Savings Method That Works for You

Your plan should include how you want to save. Here are the most effective methods:

a. Fixed Monthly Saving Method

You save a specific amount every month (e.g., ₦100,000 monthly).

b. Weekly Savings Challenge

Popular TikTok and Instagram-style challenge where you save something every week.

c. 52-Week Savings Method

Start small and increase weekly. Example:
Week 1 = ₦1,000
Week 2 = ₦2,000
…
Week 52 = ₦52,000

d. Percentage Approach

Save a fixed percentage of your income (e.g., 20% monthly).

e. Automated Deduction

Set your bank or fintech app to automatically deduct money once you get paid.

5. Select the Best Savings Vehicle

Where you save matters. Choose a secure and accessible platform.

Options include:

Bank savings account
Fixed deposit account
Fintech savings apps (savemoneycalculator, PiggyVest, Cowrywise, etc.)
Cooperative contribution or ajo esusu scheme
Investment-backed savings (money market funds)

Each one has different benefits—choose the one that matches your goal timeline.

6. Create a Realistic Timeline

Decide when you want to complete your savings goal.

Steps:

Total amount needed
Divide by number of months or weeks
Confirm you can afford the installments

Example:
You want ₦600,000 in 12 months
→ ₦600,000 ÷ 12 = ₦50,000 per month

If ₦50,000 is too much, extend the timeline.

7. Track Your Progress Consistently

Tracking keeps you disciplined.

Ways to Track:

Use savings apps with progress bars
Keep a physical journal
Use Google Sheets
Use online tools like savings calculators

Tracking helps you stay accountable and adjust your plan if needed.

8. Cut Off Leakages and Financial Distractions

You can only save more by spending less.

Reduce:

Impulse buying
Eating out
Unplanned outings
High-interest loans
Subscriptions you don’t use
Buying every new gadget

Saving is easier when you intentionally reduce waste.

9. Protect Your Savings From Yourself

To avoid spending your savings:

Keep your savings in a separate account
Avoid debit cards linked to your savings
Use fintech apps with withdrawal restrictions
Delay gratification

A disciplined saver eventually becomes a wealthy person.

10. Increase Your Income (If Necessary)

If your expenses are too high, increase your inflow.

Options:

Freelancing
Remote gigs
Part-time work
Selling products
Digital services
Side hustles

Higher income = Bigger savings.

11. Review and Adjust Your Savings Plan Regularly

Life changes—your savings plan should evolve too.

Review every:

Month
Quarter
Major income change
Unexpected expense

Adjust your target if needed. Flexibility keeps you moving forward.

Conclusion

Drawing up a savings plan isn’t complicated—it's about discipline, clear goals, and smart planning. If you follow the steps above, you can save consistently and achieve your financial dreams, no matter your income level.

To make your savings journey easier, use the Viral Savings Challenge Calculator: