Saving money. It’s something we all mean to do, but never seem to get around to. For some, it’s the inconvenience of moving money around in their accounts. To others, it’s the panic that if they save a percentage of their income, they won’t have enough money to live off of.
The good news is that saving money doesn’t need to be difficult or scary. To make it less frightening, we thought we’d share some good reasons to save and some tips to make it simpler to save.
Why You Should Save Money
Beyond the adage of “saving money for a rainy day,” there are several excellent reasons you should start saving today.
- Buy a Car – Sure, you can get an auto loan to buy your next vehicle. But you have much more buying power if you can have a sizeable down payment. Plus, it’ll help lower your monthly loan payments if you put more money down when you buy.
- Buy a House – The same rules apply for buying a new home. The more money you save to use as a down payment, the more house you’ll be able to afford. Or stay closer to your house budget and put more money down to lower those monthly payments.
- Save up to 50%
Some experts say if you save money to purchase items rather than charge them on your credit card, you’ll be saving up to 50%. That’s because, despite our best intentions, most of us don’t pay off all our credit card charges each month. Be patient and save for bigger purchases and avoid costly interest charges.
- Financial Independence
We’re not saying putting away 5-10% of your pay will make you rich, but it could make you more financially independent. Wouldn’t it be nice to be able to take that vacation when you want or buy a new dishwasher if the old one conks out? Saving will get you there.
- In Case of Emergency
We’ve talked about having an emergency fund in other blogs, but they also have a place here. Try to put away the equivalent of one to two months’ salary into an emergency savings account. Don’t touch it unless it’s a real emergency. That way it’ll be there if you face unexpected medical expenses or lose your job.
Easy Ways to Save
The easiest and most effective way to save money is to make it automatic. Here are a few tips how:
- Direct Deposit
Does your place of employment offer direct deposit? If so, you probably already use it to deposit your pay into your checking account. Speak to your HR department to see if you’re able to split your paycheck into two or more accounts. If the answer is yes, then set up your direct deposit to put 5-10% (or whatever amount works for you) into savings account. Click here to learn more about direct deposit at WWFCU.
- Transfer Funds
If you use WWFCU online banking, you can set up a recurring transfer from one account to another. Once you log on, click on Transfers and then select what account you’re transferring to and from and the amount. In the Frequency dropdown menu, select how often you’d like to make this transfer and then click the Submit button. Voila, you have a recurring transfer to your savings account!
See, saving isn’t scary at all, is it? WWFCU wants to make it easy for you to save and reach your financial goals. If you have questions or want to learn more, call (734) 721-5700 or stop by our branch to speak to a member service specialist.