In March, many employers, banks, and organizations promoted “America Saves Week.” The message was simple: Making an effort to save is vital to your financial health. Whether it is putting change in a piggy bank or contributing to a 401k plan at work it can mean big money down the road.
WHY IS IT SO HARD FOR SOME PEOPLE TO SAVE?
The easy answer is over-spending. But sometimes it is simply not being intentional about the importance of saving.
- Pay yourself first. Add a savings line to your budget. Just like a mortgage, rent, utilities, or cable/internet, every important piece of your financial picture gets a designated spot in your budget each month, so why not your savings? Prioritize your goals by adding a “savings” line with an affordable amount to your budget; pay yourself with each paycheck.
- Automatic draft. Checking to savings. Paycheck to 401k.
WHAT ARE SOME WAYS TO INCREASE THE AMOUNT THAT WE SAVE?
- Stow away the windfall. Did you receive a raise for 2018? Maybe you have a bonus coming your way for a job well done. Allocate any unexpected funds to your savings goals. You won’t miss the percentage raise you receive, so divert it into your savings account. Tuck the bonus away for a rainy day.
SPEAKING OF WINDFALLS, WHAT ABOUT TAX REFUNDS?
- Split and save your refund. This tax season, opt to split a portion of your tax refund into your savings account. Provides the perfect opportunity to start or grow your savings goal. Then adjust your withholdings and increase your monthly savings versus giving Uncle Sam use of your funds all year.