It’s a common misconception that saving means putting huge sums of money aside for an emergency, but saving doesn’t need to be a scary or overwhelming task.  There are small steps you can take right now to create the building blocks of saving smarter, better, and more efficiently. After all, creating smart savings habits is about making small decisions now to develop better habits in the long run. Saving is a habit – not a destination! 

Save Automatically

The best way to save money is by not even having to think about it. By using simple tools like setting up a monthly account transfer or splitting your direct deposit between your checking and savings accounts, you can make small but significant contributions to your savings with zero hassle. Even if it’s just a few dollars here and there, it will certainly add up over time!

A great way to give your savings a serious jumpstart is to have your tax refund deposited partly or entirely into your savings rather than checking account. The average tax refund is about $3000 which can have a substantial impact towards paying off debt while putting some aside for a rainy day. And on the subject of rainy day savings…

Save for the Unexpected

“Unexpected expenses” tend to get a bad reputation, but your emergency savings don’t necessarily need to be reserved for rainy days. Think of this more as an “Opportunity Fund” so that you’ll never have to miss a special moment, event, or anything else that might mean a lot to you and your family.

Remember that saving is cyclical – while you’re building your savings you may need to spend some as the need arises.  When you’re enrolled in any type of automated savings you can rest easy and guilt-free knowing that your still making contributions.  

Save to Retire

This is perhaps the biggest and most overwhelming challenge that many savers face.  With so many competing financial priorities in the present, how can you possibly think about saving for the future? Trust us when we say, your future self will thank you someday!

Whether it’s decades or days away, saving for retirement is important at any age. Start by figuring out what retirement means for you, what type of plan your employer offers, and then calculating how much you need to put aside to reach your goals.

Save by Reducing Debt

This is important, and might in fact be the most important item on this list.  Building your financial resilience means paying off existing debt which can lead to a higher credit score, save you money on interest and fees, and put more disposable income in your pocket.

Reducing your debt not only leads to overall better financial health, but can help you save for major milestones, like purchasing a home.

Save as a Family

Developing healthy saving habits leads to a stronger financial future – not just for yourself but for your children and other family members as well!  Start kids off on the right financial footing by having age-appropriate conversations around personal finance.

Even if your little one is too young to add or subtract, that doesn’t mean they’re too young to understand basic financial building blocks.  Use everyday activities like grocery shopping or gassing up the car as simple teachable moments to introduce the concept of exchanging money for goods and services.

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Whether you’re paying down debt, planning for retirement, saving for a new home, and everything in between, Quincy Credit Union is here for all of your financial needs.  We offer a complete line of financial products and services to help you through all phases of your life, new car, new home, savings, and retirement accounts.

If you’re interested in valuable resources to build your financial literacy, you can learn more in our Financial Education Library.

Source: America Saves Week | February 21-25, 2022