How to use Simple Math when Setting your Savings Goals

Math can get very complicated once you get into physics, geometry, etc. Many people start hating Math when it gets that complicated. The good thing is that you don’t need to know the complicated Math to make a budget and set savings goals.

In my opinion, simple math involves addition, subtraction, division, multiplication, and algebraic equations. This is exactly the type of Math you need to know for setting financial goals.

One of the first things that you have to know when setting a savings goal is the amount of money that you want to save. This amount should be written down on a piece of paper. Then, you need to create a deadline for the goal.

For example, your goal can be to save $1,000 in 10 months. Most people plan to save on monthly basis, because it is easier and organized. Divide your savings goal by the number of months left for your deadline, and you will get the amount of money that you need to save on monthly basis.

In our example, this amount would be $100 every month. But, you may want to break this down into weeks, days, or hours. To do this, you can divide $100 by 30 to get the approximate answer. You can use this same trick to get the amount for weeks.

Many people also want to know the way that they can save. You can do this by using basic addition and subtraction. Add all your expenses, and then try to figure out a way to reduce the expenses. If you manage to save on any of the expenses, then subtract this from your total expenses. This way you can plan your budget.

You also need to list all your sources of income. To do this, simply add all the money that you get on monthly basis. You can give them categories if you want, but it isn’t necessary. Subtract the expenses from the money the income, and you will get the amount that you can save on monthly basis. If you are saving only $20 per month, then you won’t reach the goal that is given in the example above. You will need to either increase your income by $80, or reduce your expenses by $80.

This is how you can use simple Math to set your savings goals. Don’t be afraid of Math, because there is always a way to get to the solution.