52 Week Savings Plan

I know I have Soapboxed about this topic before but more and more I see 52 Week Savings plans appear on Pinterest.

The most recent one that has been popping up on my home screen is the $5000 one.

Example is:
$5000 52 Week

 

 

 

 

 

And repeats like that, with inconsistent weekly savings goals. Also, lets assume that we all get paid biweekly. If we all get paid by weekly paycheck one, we need to save $55 (week 1 and 2) but in paycheck two, we need to save $170 (week 3 and 4).

Another one is where you add a $1 every week:
$1/week 52 Week Plan

 

 

 

 

 

While better I still don’t like it.

My BIGGEST issue with these set ups is in the inconsistent savings. How does one write a budget when a planned cost is always changing? Do the makers of these plans really like to rewrite their budget every week or something? I love-hate budget writing, but not enough to redo it every single week of the year. Also, if we look at the median household income was $55,775, per the government, it’s not a lot of money especially once you take out taxes, healthcare, 401(k), and living expenses (housing costs and food), saving 10% your gross income is a really big goal.

Why can’t someone just write a plan that says put $50 away every 2 weeks? Assuming bi-weekly paycheck or just per paycheck, and you’ll have close $1,300 in 12 months, assuming a return of 1% from savings account.

It’s a lot simpler to write a budget with a given cost. It’s a lot simpler to remember how much you need to move to that account if that number is constant. It’s a lot more realistic plan given the median life we live.

Be smart people! Don’t follow the fads because everyone else is doing it! Write a plan that works for you and is smart for your life!

Enjoy!

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