5 tips to healthier savings
According to a recent Google Consumer Survey, approximately 62% of Americans have less than $1,000 in their savings and 21% surveyed that they don’t own a savings account all together. When you think in terms of savings where do you fall? Following these steps could help you achieve healthier savings:
- Are You Sipping Your Savings Away?
First things first, where is your money going? Sit down and figure out where each dollar is going. How much of your funds are going to the important things (e.g. bills, groceries, things you need) and how much are you spending on things that are more “wants.” For example, maybe you love coffee drinks at your local shop, at $4.40 for the average coffee drink you get 5 days a week, that’s $22, with 52 weeks in a year that’s equals out to $1,144 for the whole year. Are you sipping your savings away?
- Plan a Budget
Now that you’ve figured out where your money is going, it’s time to plan for your monthly expenses to help keep your funds in line. This is the part where you get to find the extra that you could be putting away. There are tons of budgeting ideas and plans online as well as in our Consumers Credit Union Library. (What about the budgeting tools on our website and in online banking?)
- Bill Out Your Savings
For many who do keep a healthy savings, they like to think of their savings as a bill that they pay every month. Keeping this mindset is a great way to “pay” yourself. In the long run that “bill” could add up to a healthy savings.
- Save for Goals
People set goals for so many things, setting a goal can help with the psychological idea of something to work for. Goals help people become accountable for their actions. Maybe you want to go on a vacation, or purchase a new car, or perhaps just have an emergency fund. If you hold yourself to those goals and make them happen, it’s a great feeling. By not being responsible and sticking to your plan, the only one you’re hurting is yourself.
- Put Your Funds to Work
Once you’ve built up your savings a bit, why not put those funds to work for you!
Putting your funds in a higher yielding interest account could put your money to work for you, with the potential of turning time into cash.
For long-term savings goals consider speaking with a CFS* Financial Advisor at Consumers Credit Union. We will review your finances at no cost or obligation, explain your investment options, and help you find the right products for your needs.
Saving and managing your budget can be easily done. All it takes is a little time and good habits, and you could turn unnecessary spending into necessary savings.