By setting a plan of action to save a little each paycheck, you can get the things you need – even if you say “I can’t save on what I make.” We’re here to help you bridge the gap between “can’t and can.”
You don’t have any savings? Get this: The only difference between you and people with savings is they’ve made a good habit and you haven’t — not yet. But learning to save and getting the peace of mind that comes from having savings can become your habit too. And it won’t be as hard as you think.
Plan It. Save 4 it.
The key is to start. No matter how much money – or how little – you save, it adds up and helps build your financial future. Here’s how:
1. Choose a goal. Saving for something such as a new car or a new roof keeps you at it. Write down your goal. Then, when you reach your goal, make another one and work toward it the same way. When you see your success, you’ll be inspired to keep going. Stick to your goals and don’t take money from your savings except for a real emergency such as a car repair, medical bill, or the like.
2. Pay off debt. Notice how you spend money. Ask yourself before you spend money or think about charging if you really need the item or if you could wait. Once you see your spending habits and patterns, you can begin to change them and cut down your spending — which means putting more into your savings.
3. Ask the people at your Credit Union for details about these and other saving options:
• Share Accounts: Easy access to money, no minimum balance other than $25 required for membership, great rates, and your money is federally insured to at least $250,000.
• Certificates of deposit: Minimum investment required, generally pay higher than share accounts, but there are penalties for early withdrawals. Also protected by federal deposit insurance.
• Individual Retirement Accounts (IRA): Provide one of the most effective ways of saving for retirement, because they shelter earnings on savings from taxation, either now or in the future. This allows your savings to grow more. There are several types including: Traditional IRA, Roth IRA, and Education IRA.
4. Remember, you can do this, but you don’t have to do it all on your own. The folks at your Credit Union have experience helping people build savings. Having savings really means freedom – freedom from worry about bills, about cars that won’t run, and about kids outgrowing their shoes – financial freedom. You’ll also find that your Credit Union offers you a better deal on rates.
Save a little. Get a lot.
Start small. Slowly save as much as one paycheck at first, then slowly add to the amount as your paycheck grows. Get help with your new habit – make it automatic with direct deposit or payroll deduction.
Your money works for you when you save at your Credit Union. The more you save and the longer you save, the harder your money will work for you. So stop in or call your Credit Union and find out how easy, and rewarding, it can be to start the new savings habit.