Saving money, improving your financial life, and building wealth. These are the goals of “America Saves Week.”
This morning we want to highlight 5 goals to help you reach your savings goals.
Save automatically through a monthly transfer from checking to savings, ideally soon after you are paid. What you don’t see, you probably won’t miss. These savings will provide funds for emergencies, home purchase, school tuition, or even retirement. Almost all banking institutions will, on request, automatically transfer funds monthly from your checking account to a savings account. Learn more about saving automatically.
2. Save for Emergencies
Having an emergency savings account may be the most important difference between those who manage to stay afloat and those who are sinking financially. In fact, low-income families with at least $500 in an emergency fund were better off financially than moderate-income families who saved less for emergencies. Without an emergency savings, you may find the need to turn to high-cost credit cards or payday loans to cover the amount you owe. Borrowing from these types of lenders could make it difficult for you to payback your debt and save successfully. Start with an emergency fund goal of $500. Learn more about saving for emergencies.
3. Pay Off High-Cost Debt
The best investment most borrowers can make is to pay off consumer debt with double-digit interest rates. For example, if you have a $3,000 credit card balance at 19.8 percent, and you pay a minimum balance of 2 percent, it will take 39 years to pay off the loan and cost more than $10,000 in interest charges. Learn more about getting out of debt here.
4. Save for Retirement
5. Make a Plan
Those with a savings plan are twice as likely to save successfully. That’s where America Saves comes in. We’ll help you reach your savings and debt reduction goals when you make a commitment to yourself to save with the America Saves Pledge. Together, we’ll choose a goal and amount to save monthly. And it doesn’t stop there. We’ll keep you motivated with information, advice, tips, and reminders to help you reach your savings goal. Think of us as your own personal support system.
