Financial Education Resources

The shift toward a savings mentality is not just about accumulating money; it’s about security, preparation, and peace of mind. Learn how to pump up your savings by taking these key actions.

Have you ever been caught off guard by an unexpected expense? You’re not alone. Many Americans face challenges when they’re hit with unplanned costs. In these unpredictable times, understanding the importance of saving has never been clearer. The shift toward a savings mentality is not just about accumulating money; it’s about security, preparation, and peace of mind.

What’s on your financial wish list? A rainy day fund? Clearing that looming debt? Perhaps a deposit for that dream car or home? Or maybe you’re thinking of putting aside funds for higher education or retirement? Studies show that people with a solid savings plan tend to achieve their goals more efficiently.

In this article, we’ll outline some saving strategies that can help you and your family thrive, even in uncertain financial times.

Save AUTOMATICALLY

Ever heard of the “set it and forget it” approach? It’s not just for cooking – it’s a cornerstone of smart saving. When you make saving a regular habit rather than a sporadic activity, you’re more likely to succeed. Starting by saving as little as $10 a week can, over time, give you a cushion for those unexpected moments.

The two best ways to automate savings are:

• Split deposit. Arrange for a specific portion of your salary to be routed directly to a retirement or savings account (or even both) every time you get paid. Usually, this can be set in motion via your employer’s paycheck disbursement system. Reach out to your HR team to learn how to get started.
• Automatic transfer. On every payday, arrange for your financial institution to automatically move a predetermined amount from your regular account to either a savings or an investment account.

Save for the UNEXPECTED

Many financial experts advise having three to six months’ worth of expenses saved up. While that’s excellent advice, the sheer amount can be intimidating. Instead, start small. Aim for a $600 emergency fund, which works out to $50 per month. Once you’ve achieved that, boost your goal. Before you know it, saving becomes second nature.

Consider the 60-20-20 budgeting rule: 60% of income for essentials, 20% for discretionary expenses, and 20% for savings and debt repayment.

Save to RETIRE

Retirement might seem far off, but now’s the time to prepare. Ask yourself: How do I want to spend my golden years? Recent events have made many of us reevaluate what truly matters: Travel, family time, and making memories top the list.

But enjoying such a lifestyle in retirement requires planning now. Evaluate not just if you’re saving for retirement, but whether you’re saving enough for it. Use one of the many available online tools to give you an idea of what it might take to achieve that million-dollar retirement dream.

Save by REDUCING DEBT

Every time you pay off some debt, you’re essentially saving money – especially on those pesky interest charges. On-time payments not only save you from late fees but also safeguard your credit score. If you’re having difficulty making your payments, it’s essential to communicate with your creditors. Many offer repayment options that won’t compromise your credit score.

If you’re saddled with more debt than you can handle, consider contacting a debt relief service. This is typically a credit counseling service or debt settlement firm. These professionals can help you create a personalized plan to tackle your debt.

Save as a FAMILY

Budgeting and saving are family affairs. Surprisingly, two out of five families don’t operate on a budget, and if that sounds like you, there’s no time like the present to start. Being transparent about finances and setting family goals can make saving fun and educational. Remember, teaching financial literacy starts at home. Make it a point to discuss money matters with your kids and involve them in budgeting exercises. Whether it’s the simple act of dropping coins in a piggy bank or understanding the value of conserving energy, every lesson counts.

Discover the Power of Preparation

In a world filled with uncertainties, saving provides a semblance of control and assurance. It’s not just about counting pennies but about being prepared, enjoying the present, and ensuring a comfortable future.

Reach out to us, we're here to help you on your journey to financial security.