Promoting automatic savings to help people reach their savings goals
As part of America Saves Week 2022, scheduled for February 21 – February 25, 2022 Marshfield Medical Center Credit Union (MMCCU) is encouraging the community to take a moment to focus on the importance of emergency savings and saving automatically, in an effort to better prepare Americans for the unexpected.
America Saves Week 2022 has one single focus: Building Financial Resilience. Being financially resilient is more than having access to money; it includes being conscious of your own financial landscape, being aware of available resources, and being willing to seek out and take advantage of opportunities that will support and increase your financial wellness.
DURING THE WEEK, AMERICA SAVES FOCUSES ON THE FOLLOWING THEMES:
- Monday, February 21, 2022 | Save Automatically
- Tuesday, February 22, 2022 | Save for the Unexpected
- Wednesday, February 23, 2022 | Save to Retire
- Thursday, February 24, 2022 | Save by Reducing Debt
- Friday, February 25, 2022 | Save as a Family
“It’s never too soon to begin preparing for retirement,” said David Murphy, MMCCU President. “During America Saves Week, everyone is reminded to develop a habit of saving. With so many Americans still reeling from the financial crisis caused by Coronavirus, we thought it was important for us to collectively take a look at our finances, recognize where we are currently, where we want to be, and start making a plan to get there— even if it’s just a little bit at a time.”
Since 2007, America Saves Week has been an annual celebration as well as a call to action for everyday Americans to commit to saving successfully. “Through the support of thousands of participating organizations, together we encourage individuals to do a financial check-in that allows them to get a clear view of the finances, set savings goals, and create a plan to achieve them,” their website states.
HOW TO SAVE AUTOMATICALLY
Automatic savings simply means you have a process in place to save at regular intervals, whether that’s monthly, weekly, or daily.
If you want to save automatically, we suggest one of these three strategies:
- Split to Save. Instruct your employer to direct a certain amount from your paycheck each pay period and transfer it to a retirement or savings account (or both). Traditionally, you can set this up using your employer’s direct deposit, ask your HR representative for more details and set this up today. We call this method “Split to Save.”
- Auto-Transfer. Every payday, your bank or credit union transfers a fixed amount from your checking account to a savings or investment account. Talk to your local bank or credit union to set this up.
- Scheduled Transfer. Choose a day of the month or a regular interval, such as every 2 weeks, to transfer a set amount from your checking account to a savings account. We particularly recommend this method for people with pay that varies, such as freelancers and those working in the gig-economy. Consider picking a lower dollar amount or a time of the month when many other automatic payments aren’t happening. You’ll set this up with your bank or credit union.
Not able to set those up because you’re paid by a physical check, in cash, or currently unbanked? You can still make saving a consistent habit!
- Save your loose change. Every day, put all of the loose change from your pocket or purse into a jar, and don’t spend it. If that jar starts to look tempting, take it to a local, federally insured bank or credit union to cash and deposit into a savings account with low to no fees. However, if you’ve got a big jar: there’s no harm in watching your automatic savings pile up- literally!
WHY AUTOMATIC SAVINGS WORKS
Over time, these automatic deposits add up. For example, $50 a month accumulates to $600 a year and $3,000 after five years, plus interest that has compounded. Soon you will be able to cover many unexpected expenses without putting them on your credit card or taking out a high-cost loan.
I DON’T HAVE ENOUGH MONEY TO SAVE
If you’re still in the stage of your savings journey where you’re reducing debt (which is saving!), then visit our resources to help you pay down debt.
Remember, even while you’re actively reducing debt, everyone has the ability to start to save, even if it’s a small amount.. At America Saves, we say “Start Small, Think Big.” You can start with only a small amount, and you can save daily, weekly, or monthly. Over time, your deposits will add up. Even small amounts of savings can help you in the future.
SAVING AUTOMATICALLY FLYER
Check out, print, or download the Saving Automatically Flyer. Then be sure to take the America Saves Pledge to get support, resources, and tips to help you along your savings journey based on what you are actually saving for!
For more information, visit www.MMCCU.com and the MMCCU Facebook page.