It seems like everyone these days is worried about money. How to save it, how to invest it and how to put it aside for the future. We could all use a little help in the area of improving money management skills. All it takes to be successful in money management is to have a solid plan. Your New Bedford credit union can help you take control of your money and put it to work for you. With a New Bedford CU account, you can put money away for specific purchases, save for education or buying a new home, as well as learn how to pay down high interest credit cards and rely on emergency savings instead. Whether you have a credit union savings account or credit union checking account, these tips can all be used to help you maximize the return on your financial investments.
Learning How to Save is Important
No matter what it is that you are saving for, be it retirement or a family vacation, learning how to save your money and keep it in your credit union savings account is important. Studies reveal that only 18 percent of Americans say that they are “on track” with retirement, which matches up with data that shows the average national savings rate is only somewhere around 4 percent. Experts say that individuals should be putting at least 10-15 percent away in order to retire comfortably.
Brushing up on your basic money management techniques is an important part about saving and investing responsibly. Unfortunately, studies also show that most Americans do not have an emergency fund set up for unexpected expenses, relying instead on credit cards, payday loans and other means of financing emergency situations. It can be difficult to save for future expenses or put money away for retirement when you are living paycheck to paycheck without a safety net in your New Bedford CU account.
How to Use Your Credit Union to Your Advantage
Out of sight and out of mind is sometimes a great way to manage your money. Getting in the habit of putting money into your credit union savings account each month and then ignoring it or pretending it isn’t there is one way that people are able to successfully save. When people obsess over counting calories when dieting, they often just give up or cheat and ruin their plans for success. The same holds true with saving money. The more you think about it, look at it, go over it and make plans for what you will do with it once you reach your goal, the higher the chances are that you will take it out, spend it and ruin your progress.
Tip #1 – Compartmentalize Your Money
One way to achieve your goals is to use your credit union checking account to keep all of your fluid funds, such as money for paying bills, mortgages, car payments, insurance, utilities, groceries, credit cards and day-to-day expenses. Create a budget and stick to it. Plan your bill-paying and monthly expenses ahead of time. Allow a certain amount for groceries, eating at restaurants, morning coffees, gas – whatever you will need for the entire month.
Pay money into your savings as a monthly bill. Whatever you don’t need for basic expenses plus a little more for unexpected costs should be put away. Don’t put so much away that you get in the habit of dipping into your credit union savings account. Doing it even once or twice can make it easier to do it again in the future and eventually your money will be all gone. Unexpected money, such as bonuses, tax refunds or overtime checks, should all go directly into your New Bedford credit union savings account.
Tip #2 – Create Multiple Savings Opportunities for Special Events
In addition to creating an emergency fund, using your credit union checking account for monthly expenses and then putting money into a basic credit union savings account, think about specific things that you want to start saving for and then use your New Bedford CU account to your advantage.
For example, saving for a vacation, a special trip or a major event. You want to keep that money separate from your main savings, retirement savings, college savings and other long-term savings accounts. Speak with your New Bedford credit union customer service agent about alternative investment and savings opportunities for short and long term benefits.
Tip #3 – Pay Down Credit Cards and Other Debt
You can also use your New Bedford CU account to help you pay down your credit cards and other debt. Reducing the amount of debt in your life can help you in many ways. It stops you from living paycheck to paycheck, helping you to create that emergency fund that will help you if you are suddenly out of a job, see your hours and income get cut or experience some type of accident and injury.
Paying down your debt also frees up money that can be put into your credit union savings accounts. Every time you pay off a credit card or long term bill, begin putting that money into your savings instead. You will be surprised at how quickly you build up your savings this way and how confident you will feel once you start removing all that debt from your life.
Call St Anne Credit Union to Get Started
If you are interested in taking control of your debt and implementing money management techniques to help you and your family become more financially stable, look no further than St Anne Credit Union. Your New Bedford credit union can help you with everything from checking and savings accounts to mortgage and automotive loans, retirement savings to investments and everything in between. Membership is open to residents or employees in Plymouth and Bristol counties in Southeastern Massachusetts.