Saving money, improving your financial life, and building wealth all start when you set a goal and implement a plan to reach that goal.
Make a Plan
Those with a savings plan are twice as likely to save successfully. That is where America Saves can help. Savers are guided on how to reach savings and debt reduction goals when making a commitment to yourself to save with the America Saves Pledge. To learn more about how you can save and sign-up to take the pledge visit the America Saves website www.americasaves.org. Complete the Pledge and America Saves will send you short emails and text reminders, resources, and tips to keep you on track toward your savings goal.
Automatic savings means you have a process in place to save at regular intervals, whether that is monthly, weekly, or daily. You can instruct your employer to withdraw a certain amount from your paycheck each pay period and transfer it to a retirement or savings account (or both). You can also contact your bank or credit union to set up an automatic savings by transferring a fixed amount from your checking account into your savings account each month. Saving automatically becomes a part of your budget and acts as a safety net for unexpected situations and emergencies.
Pay Off High-Interest Debt
Paying down debt, especially loans or credit cards with high interest rates, can lead to extra money every month for saving. Prioritize paying debt with double-digit interest rates and increase your payments over the minimum due. For example, if you have a $3000 credit card balance at 19.8%, and you pay a minimum balance of 2%, it will take 39 years to pay off the loan and cost more than $10,000 in interest charges.
Save for Retirement
Retirement savings is a top priority for many savers. Saving now for retirement will ensure that you have enough money to enjoy a comfortable standard of living when you stop or reduce the number of hours you work. You may be able to save for retirement at your workplace through a 401(k) plan, which has many benefits including direct deposit from your paycheck. If your employer doesn’t offer a retirement plan, you can still save for retirement, by putting money in an Individual Retirement Account (IRA).