Diann Douglas
Saving money is one of the best habits you can have and there are many reasons to save. This week, America Saves, a nationwide campaign, launched to encourage American to build wealth one step at a time, it involves more than 1,000 non-profit, government and corporate groups that encourage people to save and build personal wealth. Start small, but be consistent and your money will grow.
Beginning Monday, each day America Saves highlighted a different topic on savings, an important financial tool to stabilize your financial well-being. You can visit the America Saves website at www.Americasaves.org for detailed information on the different savings strategies that are highlighted each day. While you are there, sign up to become a Saver and follow the events for each day to adopt a new habit if you aren’t already saving.
Monday – Save Automatically - Saving money each month needs to be a fixed expense rather than something you might do if there is money left at the end of the month. You can set up an automatic deposit with your bank. Select a date and your bank can transfer money from a checking account into a savings.
Tuesday – Family Savings Day - Talk with family members about establishing a regular savings habit. Childhood is a time to build skills, habits and attitudes related to managing money and parents can teach children as they grow. Help them learn to save money for future purchases. For example, a child may want to purchase a big ticket item such as a bike. Let him or her experience the process of saving money for the goal. Even if you require they save half of the ticket price, they learn first-hand that it takes time to save for a big purchase.
Wednesday– Save for Retirement – If you don’t have a retirement savings plan, investigate options and start saving for retirement as soon as possible. Some employers offer a retirement savings, but if you do not have a retirement benefit at your job, you can establish your own IRA. Many investment companies offer both Traditional and Roth IRAs. Now, The US government has a retirement IRA for everyday investors. Go to www.myRA.gov for facts and details.
Thursday – Save at Tax Time – Instead of spending your tax refund, have it direct deposited into your savings account. If you need to use some of your refund to pay bills, you can file for a split refund and have money deposited into savings and checking accounts.
Friday – Pay off High Interest Debt – Keeping a balance in a high interest credit card will counter act any money you are try to save, so the best strategy is to pay off the debt as quickly as you can. Make an effort to direct more money toward monthly payments. If you are expecting a tax refund, use it to power pay your debt as quickly as possible.
Saturday – Save for Emergencies – Unexpected expenses like a car repair or replacing a water heater can put a dent in your credit card. And, there you are with another high interest debt that will take months to pay off and cost you more money due to interest! Saving money each month for unexpected emergencies will build a reserve of cash for unplanned events. You’ll be able to pay for repairs without going into debt.
Start your savings habit today by signing a pledge on the America Saves website. Go to www.americasaves.org and sign a pledge to become a saver. You’ll receive tips, news and advice for reducing debt and increasing your net worth. For more information on managing money, contact the Madison County Extension Service.
The University of Florida Extension/IFAS Extension – Madison County is an Equal Employment Opportunity Institution.