America Saves Daily Savings Focus
People in Henrico County are proving you can start small and think big! They are setting financial goals, tracking their spending and taking control of their financial future. We encourage you to learn about these savings strategies and themes:
Save Automatically
The easiest and most effective way to save is to #SaveAutomatically. Having a “set it and forget it” approach to saving increases your success rate.
The two best ways to save automatically are:
- Split Deposit: Have your employer direct a certain amount from your paycheck each pay period and transfer it to a retirement or savings account (or both). Traditionally, you can set this up using your employer’s direct deposit, ask your HR representative for more details, and set this up today.
- Automatic Bank Transfer: Every payday, your bank or credit union transfers a fixed amount from your checking account to a savings or investment account. Talk to your local bank or credit union to set this up.
Over time, these automatic deposits add up. For example, $50 a month accumulates to $600 a year and $3,000 after five years, plus interest! Whether saving for an emergency fund, education expenses, retirement, or all things in between, by making saving automatic, our community is in the best possible position to reach any savings goal.
Save with a Plan
Having a savings goal is a significant first step, but savers who have a plan are 2xs more likely to save successfully. Developing an action plan for your savings goal allows you to identify how you’ll achieve your goal.
For example, instead of merely stating, “I’m going to save $500 for an emergency fund,” create a plan for your saving journey.
“I’m going to save $500 for an emergency fund by saving $20 a week for 25 consecutive weeks.”
Meet Sari Mazon, a Special Education teacher, wife, and mother, as she shares why it’s essential to save with a plan for her family.
Save for the Unexpected
Imagine that tomorrow you walk out to your car, and all four tires need to be replaced.
Or better yet, you wake up to the news that your favorite music artist is going on tour, and tickets go on sale right now!
If you have a savings account with at least $400 accessible, not only will the “unexpected” only be a minor inconvenience (or a mad dash to grab those concert tickets), but you will have more savings than approximately 60% of Americans.
Today during #AmericaSavesWeek, we are focusing on saving for the unexpected.
Don’t have an emergency fund or looking to grow your emergency fund? Take the America Saves Pledge and commit to successfully building an emergency fund of just $500. Embrace the “Start Small and Save Big” mentality.
Save to Retire
Preparing for retirement can easily be pushed into the “someday” category, as we focus on present needs and expenses. In fact, very few Americans have a plan for retirement savings that is adequate for their desired standard of living after they retire. Today our focus is to encourage Americans to save today for tomorrow and discover just how much they need to save for their golden years.
No matter your age, saving for retirement requires having a plan outside of only contributing to your employer’s 401K plan.
We also encourage you to create an account on www.socialsecurity.gov/myaccount to see what your current estimated monthly benefits will be at the age you retire.
If saving for retirement is your current savings goal, be sure to take the America Saves Pledge and receive tips, reminders, and other resources to support you on your savings journey.
Save to Reduce Debt
Are you currently working to pay down your debt? Well, guess what? You ARE SAVING!
When you actively reduce your debt, you save on interest. When you pay on time, you save on late fees and maintain your credit score – which will save money long-term.
Reducing debt should be acknowledged and celebrated as a form of saving and a component of your financial plan.
Save as a Family
The best way to teach great money habits to our children is to model great money habits. While most Americans know the importance of making sound financial decisions, many feel that money management wasn’t taught to them at a young age.
Meet The Caldwell Family; a family determined to instill positive saving behaviors in their young children.
Financial Questions?
A personal finance expert from the Henrico Office of Virginia Cooperative Extension can provide you with information and resources. Contact Kimberly Edmonds at (804) 501-5160 or [email protected] with questions.
