Together Credit Union just launched Achieve It! Checking, which helps individuals save after every purchase. The program rounds up purchases to the nearest dollar and deposits the change into a savings account. Together Credit Union stresses the importance of saving, planning, and protecting a person’s future by being ready for the unexpected. The credit union offers advice about easy ways to achieve savings goals that anyone can implement today.
1. Automate your savings. When you set up direct funding to savings accounts, you are setting yourself up for success. Reduce the temptation to skip saving by having it done for you before you can spend it.
- Set up a direct withdrawal from your paychecks to savings. Speak with your employer’s HR department to set up the direct transfers to a savings account, retirement account, or both.
- Have your bank or credit union set up a monthly transfer to savings. Choose a fixed amount to come out each month to transfer directly into savings.
2. Save for a rainy day. Having money set aside for unforeseen costs, or emergency funds, creates an extra source of cash to dip into should the need arise. Avoid putting these costs on a high-interest credit card, which could add hundreds of dollars to the original expense, or dipping into other savings that would affect your long-term financial goals. It is best advised to save up as much as three to six months’ worth of expenses.
3. Reduce debt. Spending money on interest rates adds up and takes away from money that you could be saving. First, organize a list of any debt, taking stock of the monthly payments and interest rates. Then, prioritize which debt to pay off first, tackling those with the highest interest rate. Pay more than the minimum; once the amount is paid off, move down your list to pay off any other debts. Consider whether debt consolidation is right for you. This means paying off your high-interest payments in one monthly, low-interest payment, allowing you to keep more money to use toward paying off debt faster.
4. Make it family-oriented. Saving money can sometimes be hard for children to understand, but it can be fun when they are involved in the process. There are many ways to incorporate the family into financial goals, such as creating a jar for savings, making grocery shopping a competition, or explaining ‘needs’ versus ‘wants’ in terms that children can understand. These steps will help teach children financial responsibility and prepare them for monetary management when they become teens or young adults. Not only are you teaching them good habits early, but you are also investing in their future.
For more than 80 years, Together Credit Union has been a trusted partner to members in helping them reach their financial goals. Together Credit Union offers a wide range of banking products and financial services nationwide, with 24/7 member resources and amenities to help customers tackle debt and save. Learn more about their array of options here.
This post was created by SLM Partner Studio on behalf of Together Credit Union To learn more, visit togethercu.org
