Tips to Save Money
Some people mistakenly believe that you need to earn six figures, win the lottery, or strike it rich on Wall Street to create a comfortable savings account. On the contrary, anyone can save money if they follow the right tips. Here are some small changes you can make right now that will yield big results over time.
- Don’t delay: Implement these tips today. If you wait until you make more money, you’ll have to contend with the higher spending that comes with higher earnings. Start now to begin seeing the benefits sooner rather than later.
- Start small: Even tucking away 5 to 10 percent of your paycheck can help you build a “rainy day fund.” Your first goal should be to save $1,000. Once you reach that milestone, aim to save the amount you earn in one month. Again, once you reach that point, keep going! The recommended amount of savings for a rainy day is three to six months’ worth of expenses.
- Write out your budget: If you find that you’re spending more than you earn some months, think of ways to cut back. Cook instead of eating out, cancel one of your subscriptions, and stick to your shopping list to avoid impulse buys.
- Direct deposit some of your income into a savings account: Many employers offer the option to split your paycheck into different accounts. To avoid the temptation to spend instead of save, allot a certain portion—perhaps as much as 20 percent—to go straight into a savings account.
- Create an account for big-ticket purchases: Saving up for a new laptop, vacation, or down payment on a car? Create a savings account to keep these funds separate from your day-to-day spending money.
- Take advantage of employer benefits: If you have the opportunity to contribute to a 401(K), Health Savings Account (HSA), or something similar through your employer, take advantage of it! If your employer matches your contributions, your savings will grow even faster.
- Put spare change in a jar: Any time you pay with cash, put the change you receive in a jar. After several months of collecting, you may find you have enough money for a nice date night, holiday shopping, or even a weekend getaway.
- Convert loan payments into an investment account: Once you make the final payment on your car or student loan, keep writing the check, but put it in an investment or savings account instead. Choose one with a high APY, and your money will grow faster than if you simply left it in your checking account.
GCS Credit Union offers multiple personal savings account options to make your dreams of saving big come true. Ready to learn more about which account might be right for you? If so, please schedule an appointment with one of our team members today by calling us at (618) 797-7993.