3 Smart Saving Tips
Life is full of opportunities and surprises. Are you ready for whatever comes your way? Even if you aren’t saving for a specific purpose, it’s a smart idea to set money aside on a regular basis. Some people call it a rainy day account, others might an emergency fund. No matter what you call it, it’s a worthwhile investment in yourself!
Set a goal. Figure out how much you want to set aside and add saving to your budget.
Pay yourself first. Direct deposit or transfers can help you make it automatic.
Pay yourself back. If you need to use your savings for something, replenish it afterward.
How much do I need?
Most Americans only have about $1,000 in savings, which means they have to turn to expensive alternatives like credit cards when faced with an unexpected expense. Financial experts recommend having enough savings to cover your usual monthly living expenses for three to six months. That means your first step should be taking a look at your monthly budget to determine what your savings goal should be.
Where do I start?
You could stash some extra money under your mattress or in your sock drawer, but all it will do there is collect lint. Why not stash your money someplace where it can collect more money instead? There are a lot of different types of savings accounts that can help your money grow. The best place to start is by understanding what your options are and who you can turn to for help.
Here are a few basics to keep in mind:
- Savings accounts keep it simple with anytime access.
- Certificates help you earn more if you’re willing to save for a set period of time.
- Money Market accounts are a risk-free way to earn high rates with flexible access.
- A Dupaco financial advisor can help you figure out what types of accounts make sense for you.
- Savings Interest
Estimate how much money you’ll have in your savings account in the future.
- Save toward a goal
Determine what you’ll need to save each month to reach your next big purchase.
- Savings Budget
Find out how much you can put away based on your monthly income and spending.
- Certificate/CD Calculator
See what a term-share certificate/CD investment could be worth.