Saving money is one of lifeâ€™s most essential skills. It helps you stay financially balanced, allows you to stay on your feet in the event of an emergency and live more comfortably. Unfortunately, many Americans are awful at saving.
According to a 2012 financial literacy survey conducted by the National Foundation for Credit Counseling and the Network Branded Prepaid Card Association, 40 percent of American adults are saving less now than before, and nearly the same number have no savings outside of what they have stashed away for retirement.
So why is saving so hard? Most often it is because there is no planning involved; you say â€œIâ€™m going to try and save more moneyâ€ and thatâ€™s it. What you really need is a savings plan. It details where youâ€™re going to be putting your savings, what goal you are shooting for, how much youâ€™re going to save each pay period and other important aspects that will help you build your savings account balance. Letâ€™s take a look.
Open a savings account- this may seem like a â€œduhâ€ thing to say, but you would be surprised how many adults only have a checking account. Raccoon Valley Bank can help you choose the savings account that is best for you.
Create a savings goal- your first savings goal should be to create an emergency fund. This is an amount equal to three to six months of living expenses in the event of job loss, hospitalization, etc. Once you have that in place then you can start saving for a new car, TV or whatever else you need.
Pick an amount to save from your income- but donâ€™t overdo it. Most people pick a high amount because they want some instant gratification. But saving is a process repeated over time, so pick an amount that doesnâ€™t kill your budget but still allows you to make progress.
Set up automatic savings- one of the beautiful things about Online Banking from Raccoon Valley Bank is that you can set up automatic recurring transfers. You wonâ€™t miss money you donâ€™t have, so set your recurring transfers for your paydays. That way you areâ€¦
Paying yourself first- by that we mean before you spend any of your paycheck on anything else, youâ€™re putting some of it away in your savings account. You are essentially paying yourself money you can use in the future.
Whatever youâ€™re saving for, these tips for creating a savings will undoubtedly help. For more ways Raccoon Valley Bank can help you save, just call or come by any of our offices today!