She Strengthens

Mastering Your Savings: A Personalized Approach

For many, saving money seems like a daunting task. It’s easy to get caught up in the idea that having a large sum of money set aside is the key to financial security. But what happens when unexpected expenses arise, and that savings account dwindles down to zero? This was my reality until I took a step back to reassess my approach to saving.

The Pitfalls of Vertical Saving

I used to think that saving was as simple as reaching a certain number, but I soon realized that this approach had its limitations. When I saw that big number in my account, I’d often forget about the various expenses it was meant to cover. Before I knew it, my savings would be depleted, and I’d be left scrambling to rebuild.

Discovering My Financial Identity

Through self-reflection, I’ve come to understand that I thrive on achieving small, frequent goals. I find joy in making constant progress, no matter how modest. I’ve also learned that my definition of a treat is flexible, which helps me prioritize my spending. With these insights, I’ve developed a new approach to saving – one that’s tailored to my unique needs and preferences.

Horizontal Savings: A New Perspective

My “horizontal savings philosophy” involves dividing my savings into distinct categories using an Excel spreadsheet. This system forces me to think ahead and allocate my savings accordingly. By doing so, I’m no longer caught off guard by annual expenses or unexpected costs. I’ve taken control of my finances, and it feels empowering.

How It Works

Each month, I update my spreadsheet with my latest savings deposit. The formulas automatically distribute the funds across my various categories, ensuring that I’m making progress towards each of my goals. If I need to make a withdrawal for a specific expense, I simply subtract the amount from the corresponding category. This visual representation of my savings provides a sense of satisfaction and motivation to continue moving forward.

Tweaking and Refining

Over time, I’ve refined my percentages and added new categories to my spreadsheet. This process has helped me gain valuable insights into my spending habits and identify areas for improvement. While there are apps and programs that can categorize for you, I prefer the control and privacy that my Excel sheet provides.

Finding Balance and Automation

My horizontal savings system has struck a perfect balance between control and automation. When I’m feeling overwhelmed, I can simply plug in one number and watch my categories tick up. If I’m feeling ambitious, I can dive deeper into my spreadsheet and make adjustments as needed.

A Journey of Self-Discovery

Developing this system has been a process of trial and error, but it’s helped me finally understand what my money is doing and why. I’ve found a sense of harmony between my logistical and lazy selves, and it feels amazing. By taking the time to understand my financial identity and develop a personalized approach to saving, I’ve gained a sense of control and confidence that I never thought possible.