Being financially resilient is more than having access to money; it’s about understanding your own financial landscape, being aware of available resources, and taking advantage of opportunities that support and increase your financial wellness.
Here are five “Savings Tips” that could help you and your family achieve better financial stability:
While having a savings goal is important, making savings a habit is the most effective way to achieve your goals. The easiest way to make saving a habit is by setting up automatic savings.
Whether your goals include starting an emergency fund, paying for education expenses, planning for retirement, or all things in between - saving automatically is an easy and effective way to build your savings!
Plan to save with our calculators here: https://www.dcu.org/bank/savings/primary-savings.html
Save for the Unexpected
We’ve been encouraged to save for the emergency that’s just around the corner. “The unexpected” can be an emergency, but it can also be something fun and positive. Routinely set money aside for when unexpected opportunities arise - don't miss out on the fun! While you’re building savings, you deserve spend it, too!
Explore DCU’s many savings account options here: https://www.dcu.org/bank/savings.html
Save for Retirement
Saving for retirement is a priority and different options are available for retirement savings. Remember to Start Small, Think Big! Increasing your retirement contributions by one percent each year can go a long way. Your future self will thank you.
To learn more about how to accurately plan for retirement no matter your current stage of saving, visit https://www.dcu.org/learn/financial-education/streetwise/retirement-home.html
Save by Reducing Debt
An important part of building financial resilience is reducing the amount of debt you carry. As you pay down debt there are natural benefits like increasing your credit score, saving money on interest and fees, and putting cash back in your pocket for discretionary expenses.
Learn what contributes to your credit score here: https://www.dcu.org/learn/member-resources/members-monthly/members--monthly-newsletter-march-2020-CreditMix-dcu.html
Save as a Family
Conversations around money ensure the young people in our lives are equipped to understand the tools and building blocks of personal finance. Information, resources, and discussion paired with action promote youth to “think like a saver.” Start by having age-appropriate money conversations around things like owning an account, making savings a habit, and utilizing direct deposit.
Find tools and resources for personal finance here: https://www.dcu.org/learn/financial-education.html
Here are a few more tips that could help you save even more:
• Set a budget (and stick to it!) – try following the 50/20/30 Rule of Budgeting:
o 50% of income should go towards needs – rent or mortgage, utilities, car payments, groceries, insurance, gas, etc.
o 20% of income should go towards savings – savings or emergency accounts, investments, paying off credit card or other debt, etc.
o 30% of income should go towards wants – travel, clothes, entertainment, books, subscriptions, dining out, etc.
• Save on your taxes – file your Federal Taxes for free! Visit irs.gov to find out how.