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 Most people who build savings don’t do it overnight. They build savings with proper planning and a deep desire to reach a goal. You too can build savings by simply establishing a personal goal, develop a budget, control spending, and use InvesTex Credit Union to assist with your plan.
Why do you want to save? Do you want to send your child to college, buy a home, start a business, or prepare for retirement? Or do you want to just save up for a family vacation next year. Whatever your goal is, you can make saving easy by developing a realistic budget.
First, determine how you are currently spending your money. Track all your monthly expenses including living costs such as groceries, entertainment, etc. Compare your total expenses to your net income. Any money left can be used for savings. If you find the amount left is low or negative, review your expenses and determine how you can cut back costs. Grocery coupons are a great way to reduce living expenses. Renting movies and eating at home is another way to reduce your entertainment costs. Small improvements in your budget will have a big impact over time.
A budget plan allows you to:
- Understand where your money goes.
- Ensure you don’t spend more than you make.
- Find uses for your money that will increase your savings.
Next, review your debt load. What type of loans do you have and how much are you paying per month? How much are you paying on interest? Debt is a financial tool for you to maintain a standard of living but is to be used wisely. Good debt management includes loans on cars, homes, or on any necessary items for you to earn a living and maintain a reasonable lifestyle. Putting day-to-day expenses such as groceries or utility bills on a credit card and not paying off the balance monthly can lead to debt overload. Credit cards are not an efficient method to finance purchases unless the balance is paid off monthly. Control the use of the card and work to pay off balances.
The cost of debit (interest) should be controlled. Find out what your credit score is. Generally, higher interest rates are charged to consumers with low credit scores. You can save thousands of dollars on interest by increasing your credit score. Reducing your debt load and increasing your credit score will free up money to increase your savings.
Finally, start your savings plan. One of the easiest ways to save is to pay your self first. When you receive your periodic payroll, simply deposit a pre-determined amount into your InvesTex savings account. This can be done automatically with direct deposit. InvesTex offers a variety of accounts to help with your savings plan. Our Secondary Savings Account features the ability to customize the name of your account. Our Christmas and Vacation Club Accounts help you save for the holidays or a family vacation. Our Payroll Growth Certificate of Deposit (CD) conveniently transfers money from your paycheck to build up to the minimum CD deposit amount of $1,000. Open one of our Certificate of Deposit Accounts, available in a variety of terms (amount of time before maturity), to earn more interest. Open an Individual Retirement Account at InvesTex to help you save for retirement.
So, pay yourself first, pay your debts timely and enjoy the rest of your income and you will be surprised how easy it is to save. Whatever your saving goals may be, remember to establish a realistic budget, control spending, stick to your plan, and watch your savings grow. Let InvesTex Credit Union be a part of your well thought out and balanced financial plans! InvesTex Credit Union; Making Life Better since 1952!
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