Everyday life usually has us all thinking in terms of spending: how much are we bringing in, what can we afford to spend? However, just as often, we hear that our first thought should be, “how much can I save?” It’s a common dilemma, but building up your savings is crucial to securing your financial future and protecting yourself from unexpected expenses.
Saving for the Unexpected
Over the past few decades, Americans on average have been saving less, but a “rainy day” fund has become more important than ever due to economic stress. Growing a healthy emergency fund can help prevent an unexpected event like repairing your car or house, or worse, a medical emergency, from quickly becoming a financial disaster. Savings accounts are a tried-and-true way to earn interest on your money and prepare for any rainy day that comes your way.
Simple Strategies for Building Your Savings
You might think that building up your savings is complicated or too difficult to stick to in the long run. But it doesn’t have to be! With direct deposit, you can set up automatic transfers from your paycheck into your savings account every time your paycheck comes in. The psychology of it is clear: you are less likely to spend what you don’t see, allowing your savings to grow. If you tend to use your regular savings as a backstop for fluctuations in weekly or monthly expenses, setting up a separate account for your emergency funds will reduce the temptation to dip into your savings further.
Smart Money Strategies to Help You Earn More
The traditional savings account is a great tool for keeping some of your money from easily being spent, but there are more options to consider when you are ready to move beyond savings only for emergencies.
Saving Together
However you choose to begin building savings, InTouch Credit Union offers a variety of savings options as your funds grow. Depending on how you structure your savings, you will still have access to your money, should an emergency rear its ugly head. So, while saving for a rainy day may seem somewhat old fashioned, changes in the financial climate make it as important as ever to set aside some money to avert disaster.
Check in with us at InTouch Credit Union today. We have a savings account just right for your money management plans.