Today is National Savings Day so it’s a great time to think about your saving (and spending) habits and what you can do to improve if you’re not saving enough. Our relationship with money is important because it affects just about every decision we make.

Why is saving money important?

Having a savings account allows you to:

• Earn interest on your deposits
• Keep your savings separate from your spending money
• Plan for major expenses like buying a car or a home
• Reduce financial stress
• Handle emergencies such as car or appliance repairs or medical expenses
• Have greater financial freedom

Here are 5 pointers on how you can save more money!

1. Stick to a Budget – Budgeting will help you stay on track and hold yourself accountable for your spending. Following a 50/30/20 rule will help you establish routine savings as part of your monthly plan.

2. Get the 401(k) Match – If your company has a 401(k)-match program, make sure you are contributing at least the minimum to get the company match. For example, if they match up to 4%, you should contribute at least 4%. That’s 8% of your 20% savings goal!
3. Make it Automatic – The easiest way to reach your 20% savings goal is to automate the process. Set up automatic payroll deduction from your paycheck directly into your Members Trust savings account. Whether it’s $10 or $100, your savings will grow, and you won’t have to lift a finger!
4. Save Unexpected Cash – If you sell something on eBay, win a bet, get birthday money, a tax refund, or a bonus check, put that into a savings account instead of spending it. Use a jar to collect your loose change and then take it to the credit union to deposit it into your savings account. This is “unexpected” money, so pay yourself first!
5. Follow the 30-Day Rule – Impulse buying will sabotage your savings efforts. Amazon makes it too easy to throw something in your cart and have it delivered the next day. Next time you find yourself in this situation, use the 30-Day Rule. Wait for the 30-day “grace period” to see if you really want to make that purchase. If you really want it, research more affordable options and/or save for the item.

When it comes to building savings, time is your secret weapon. Making consistent contributions, paired with compound interest, will grow your savings over time. Having a savings “cushion” give you added peace of mind and financial security.

When you’re ready, we’re ready to help! Contact Members Trust to get started.