America Saves Week

Save Automatically

Having a savings goal is important and making saving a habit is the most effective way to achieve your goal. The easiest way to make saving a habit is by setting up automatic deposits into your savings account.

When you are saving a dedicated amount of money every week, every month, or on some other regular interval, you can begin to feel a sense of control over your saving habits. Whether you are saving $5 or $10 a month, or more; it’s the fact that you’re doing it automatically and consistently that is important.

Whether your goals include starting an emergency fund, paying for education expenses, planning for retirement, or all things in between - saving automatically is an easy and effective way to build your savings!

Plan to save with our calculators here: https://www.dcu.org/bank/savings/primary-savings.html

Save for the Unexpected

Here are a few strategies that may help you begin or continue your path to saving for unexpected emergencies and opportunities.

• Set a goal of saving $500 and once you reach this amount, set a new goal for another $500 and keep going.
• Knowing exactly what your income and expenses are will help you set a realistic timeframe for saving that first $500 and beyond.
• Focus on saving for opportunities as well as emergencies. Save to pay for car repairs, home expenses, or medical bills, as well as for an unplanned dinner out or the chance to enjoy an unexpected experience.
• Keep three to six months of expenses in your savings account as a guideline. Focus on what makes the most sense for you at this time, knowing that as your income grows and/or expenses decrease your ability to save will change over time.

Explore DCU’s many savings account options here: https://www.dcu.org/bank/savings.html

Save for Major Milestones

Major life milestones like owning a home, education, and retirement require advance planning and saving large amounts of money. There are ways to plan and save for these major milestones in a way that aligns with your values and current life situation, and still sets you up for success.

• Make a plan for how much you need to save and your deadline. For example: Save $5,000 towards college tuition costs by December 31.
• When you have multiple savings goals that you are working towards at the same time, it’s important to prioritize them. Decide which goal is the most important to you right now and allocate a greater percentage of your available money to save more for that goal over the others.

Paying Down Debt is Saving

An important part of building financial resilience is reducing the amount of debt you carry. As you pay down debt there are natural benefits, like increasing your credit score, saving money on interest and fees, and putting cash back in your pocket for discretionary expenses.

Learn what contributes to your credit score here: https://www.dcu.org/financial-education-center/credit-cards/credit-101.html

Saving at Any Age

Saving should be a lifelong habit. You’re never too young or too old to learn and implement positive saving habits. Conversations around money ensure we are equipped to understand the tools and building blocks of personal finance. Thinking of our future self – what we will want, what we will be doing, what we will believe – is one way we can develop a saving mindset. No matter what stage you’re at in your life, saving starts with education.

Find tools and resources for personal finance here: https://www.dcu.org/financial-education-center.html

Here are a few more tips that could help you save even more:

• Set a budget (and stick to it!) – try following the 50/20/30 Rule of Budgeting:
  • 50% of income should go towards needs – rent or mortgage, utilities, car payments, groceries, insurance, gas, etc.
  • 20% of income should go towards savings – savings or emergency accounts, investments, paying off credit card or other debt, etc.
  • 30% of income should go towards wants – travel, clothes, entertainment, books, subscriptions, dining out, etc.
• Save on your taxes – file your Federal Taxes for free! Visit irs.gov to find out how.