Here at Consumers, we’re participating in America Saves Week by bringing you great savings tips from around the web. This article is courtesy of Katie Bryan, America Saves Communications Manager.
The theme for America Saves Week 2013 is more than just a theme; it’s is the essence of a sound approach to savings, designed to help individuals take financial action. Set a Goal. Make a Plan. Save Automatically. Knowing what you want to save for, how to achieve it, and then making the savings process automatic will allow you to reach your savings goal.
Set a Goal
You can save more by having a goal in mind. Visualizing what you want to save for gives your savings a purpose. You may be tempted to withdraw from your savings if it has no purpose. But once you have a goal in place, you know that taking money out of your savings is taking away from that ultimate goal. So what are you saving for? An emergency fund, a home, retirement, a car?
Make a Plan
Once you have your goal in place, make a plan for how you are going to save. To start, cut down on your spending and reduce high-cost debt. Next, keep track of what you spend and make a budget. Once you know where your money is going each month, you can cut down on unneeded spending and save the difference.
Don’t forget to keep your savings safe, secure, and growing. Your credit union offers a variety of financial products that can help you save.
It can be hard to put aside money for savings. But there is an easy way to save money without ever missing it. Once you know how much you can save, make saving automatic. Many employers allow you to divide your paycheck into different accounts through direct deposit. Take advantage by putting part of your pay into a savings account. If you get paid in cash, take a small amount to the bank to deposit into a savings account each week.
Take the America Saves Pledge (or re-pledge) today to set your savings goal and make a plan to save. You can also follow America Saves on Facebook and Twitter. (While you’re at it, like Consumers on Facebook and follow us on Twitter.)
America Saves Week is coordinated by America Saves and the American Savings Education Council. Started in 2007, the week is an annual opportunity for organizations to promote good savings behavior and a chance for individuals to assess their own saving status.