New Years Savings Tips

The path to financial stability and freedom starts with a single dollar saved. What better time to start a savings account, than at the start of a new year. Life is full of surprises and being prepared financially can help ease the burden of an unexpected expense. 

Besides for emergency situations, there are plenty of benefits of saving money. For example, saving for big life events like buying a home, planning a vacation, or saving for college all start with a goal and plan to achieve it.  A savings deposit plan can do just that. 

A savings deposit puts long-range goals in motion and gets you one step closer to financial independence. Try not to think of saving money as restrictive, but a way to spend responsibly and prioritize financial goals. Better yet, make it a habit to consistently put money away. Start small and contribute often. 

Here are strategies and tips to save more money this year:

Short-term Savings

The Emergency Fund – It is always a good idea to have at least three to six months worth of emergency savings. With the help of a high-yield savings account, prepare for the unexpected with just a few dollars a week (you can also earn extra cash back and rewards with our KOFE Club and KASASA Cash Back).

The Major Purchase – Things like a car or home appliances can need replacing when you least expect it. Be prepared with a savings deposit plan that lets you access your money when you need it. 

The Trip of a Lifetime – Plan the vacation you’ve always dreamed about whether it’s to an exotic land or a staycation near home. Take advantage of club accounts that allow deposits weekly to a separate account dedicated to one thing, a perfect vacation!

Long-term Savings

Home Sweet Home – Everyone deserves the opportunity to be part of the American dream as a homeowner. Meeting the down payment is a labor of love and and a product of sensible saving. While many mortgage companies require a 20 percent down payment, this may be the single most important savings deposit as an adult.

College Bound Kids – It’s never too early to start thinking about your children’s college career. Perhaps, parents should consider a tax-advantaged account like a 529 plan or put the kids in charge and open a Youth Savings Account

Retirement and Beyond – Do you have enough money to retire comfortably if you should survive to be 70 years old and beyond? At this stage of life, a savings plan should be devised to cover bills, medical and living expenses with distributions that make sense.

Automation

Once you’ve established a savings deposit plan, the best way to ensure success is to automate a deposit at each pay period. There are innovative and easy-to-use tools to put money away before you’ve even had a chance to spend it. 

Direct Deposit – Set up direct deposit at the frequency of every pay period and automatically designate money to be added to various accounts. While some find it hard to save, direct deposit helps remove the reluctance factor and seamlessly assists with building financial wealth with little effort.

Retirement IRA’s – Sign up for employer-sponsored retirement plans and automate contributions at the frequency of each pay period. If there is no retirement plan at work, consider opening a Traditional or Roth IRA to meet future financial goals. 

Managing your money and saving for your retirement, unexpected expenses, and education are all important. At Members 1st, you can choose from a variety of deposit accounts that will help you save and earn more this year. Learn more about our savings options.