3 Simple & Systematic Savings Plan

Over the years people have worked and tried to create savings from whatever earnings they fetch. However, in this century… the 21st century a lot of youth who have commenced working have started falling into enormous debt. How are they sinking into massive debt? We all start with fair wages. Though trying to show the world that we are living the good life, break the bank. If you ask how are we still doing this! Some take credit cards and others take huge loans. Therefore putting ourselves into a vicious cycle of debt and debt relief. This cycle if not broken, becomes one that causes for stress anxiety depression, and multiple other health disorders.

So how do you beat it? Here is my three ways to ‘Simple & Systematic Savings Plan’


One way is by creating a system or a plan to save a portion of your income. Here is how. First, figure out how much you need per month to survive. From your whole salary divide it into 4 parts. The first part (40% of your salary or income) is for essentials and monthly expenses ( this covers, food, electric, gas, phone bills, fuel, etc). The second part (15% of your income) will be for other things like outings and fun activities (holidays or family visits) The third part (20% of your income) will be kept for emergencies and if in a month there are none it goes into a recurring deposit for future use. The forth point (25% of your income) goes straight into savings. No questions asked, no excuses.


Let’s say you are not one to handle too much addition, subtraction or division. Another simple system is to create a layered savings plan using a low saving amount and slowly building up to a large amount.

This will take you about 6 months to finish one layer and then 5 years to create an inflow of interest and savings and 10 years to ensure it continues to aide your financial needs or saving needs at the time.

Check out the simple table explaining how this can be done. (amounts are in Indian Rupees) As you can see from the example here, this is how the layered savings system works.


From your total earnings per month all you have to do is subtract 30% of what you get in hand and put it away in to any form of saving. You can set up an automated system for this amount to be auto debited on a specific day in any given month. Of all the discussed plan this one is slightly harder. Reason being you have to assume that 30% of your income is not yours to use. This system is good and beneficial if one can commit to it. Having shared these with you. The best way forward is for you the reader to come up with your own plan. Choose one that works well for you and make tweaks or changes as needed.

Now while this is just a suggested breakup of how to do it. You tango ahead and make adjustments to the numbers to suit your need. Always Remember, discipline in handling money will give you an added advantage. It helps you stay financially independent and stress-free.

Follow Ignatius Deepak Stanley

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