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We all have heard the statistics about America’s saving habits.
“Fifty percent of Americans have less than one month of their income saved for a rainy day”
“42% of people in the United States aren’t saving for retirement. Even among that 58 % who are, only one in 10 save 15% or more of their income for retirement.”
Admittedly, we all could be smarter savers. But when push comes to shove, it can be hard to pass up on a morning coffee run, or even finding some wiggle room in your budget for an emergency fund deposit. Let’s face it, the challenge of saving money is just that- challenging. Which is why we are proud participants of America Saves Week.
All week long, we have been posting savings tips and tricks to help you establish a budget mindset and meet your savings goals. Here are a few of the key takeaways from America Saves Week that you can implement all year long.
The easiest and most effective way to build your emergency fund is to set up automatic savings. Having a “set it and forget it” approach to saving increases your success rate. Talk to your employer about setting up a split deposit plan to automatically funnel a portion of your pay to your savings account. An alternative method is creating an auto-transfer in your bank account for each pay period.
2. Save with a Plan
Put the pen to paper when it comes to saving money. Instead of simply stating you will save $500, make an action plan to help get you to the finish line. For example, “I am going to save $500 by setting aside $20 each week.” Setting a small and realistic goal can make the task of saving money less intimidating while still boosting your savings.
3. Save for the Unexpected
For better or worse, things will come up that will require you to dip into that rainy day fund. If you have a savings account with at least $400 accessible, not only will the “unexpected” only be a minor inconvenience (or a mad dash to grab those concert tickets), but you will have more savings than approximately 60% of Americans.
4. Save to Retire
Preparing for retirement can easily be pushed into the “someday” category, as we focus on present needs and expenses. No matter your age, saving for retirement should be on your to-do list. Make sure you are making the most of your company’s 401(k) match and are revisit your retirement planning strategy
5. Save to Reduce Debt
Are you currently working to pay down your debt? Well, guess what? You ARE SAVING! When you actively reduce your debt, you save on interest. When you pay on time, you save on late fees and maintain your credit score – which will save money long-term.
6. Save as a Family
The best way to teach great money habits to our children is to model great money habits. While most Americans know the importance of making sound financial decisions, many feel that money management wasn’t taught to them at a young age.
Whatever your goal is, we’re here to make it all work together for you! Contact a team member to start your journey to financial wellness today.