There are two ways to finance a major purchase: get a loan or put money aside into savings until you have enough. Studies show that Americans are taking a more debt-free approach to major purchases than ever before. Those who don’t pay for major purchases cash outright are at least increasing the amount of down payment that they are making to reduce their monthly payments for mortgages, auto loans and other big-ticket items. Not only will lowering your monthly payments make it easier to fulfill the terms of your loan and ultimately boost your credit rating, but it will also save you money over the term of your loan by reducing interest rates, fees and other costs.
Tip #1 – Think About Savings Like a Bill
If you learn to treat your monthly deposit into your credit union savings account as though it is a bill that is “owed,” you will do it more regularly. Set up a savings account at St Anne Credit Union in New Bedford. Choose from a basic savings account or a higher interest rate option, such as a money market account or certificate of deposit in New Bedford. Minimum deposits and balances are required on CDs and money market accounts, but you can use your New Bedford Share Savings account to save up the minimum deposit and then grow your money in a higher interest rate solution.
Tip #2 – Put All Extra Money into Savings
If you work an overtime shift or get tips at your job, put everything that you earn beyond your basic paycheck into your savings account. It will help to grow your money faster than you might think. Even an extra $50 a month can yield $600 in a year, in addition to the monthly deposit that you are already making into your credit union savings account.
Tip #3 – Take on More Work
If possible, take on extra shifts or get a part-time job on a temporary basis to boost your savings even further. Some jobs will do direct deposit into your credit union in New Bedford so you won’t even have to be tempted by having that extra money in-hand. Just make sure you set a reasonable goal for savings, as well as a timeline for saving it, so you don’t run yourself ragged while you try to build your New Bedford Share Savings account.
Tip #4 – Cut Out the Extras
How much do you spend each month on high-priced lattes at your favorite coffee shop? At just $5 each, you might be spending between $20-25 a week or more that could be going into your savings. An extra $100 or more each month could really help make a difference. Consider buying some nice to-go cups and brewing up your coffee at home instead. How often do you go out for lunch or dinner? Even if you are only spending $10 a day for lunch or $25 for a nice dinner once a week, it will also add up. Consider brown bagging it instead. Not only will you save money, but it will be healthier than all that fast food. You can put the savings into your credit union account and then transfer to a certificate of deposit in New Bedford to grow your money even more.
Tip #5 – Shop Smart
When making purchases each month, learn how to shop smarter for things like groceries and gasoline. Take advantage of smartphone apps that provide coupons, discounts and alerts on the best prices in your area. Make a grocery list instead of just “shopping from memory,” which often leads to impulse buys for things you don’t really need. Budget for your grocery shopping and see if you can save even more than your target amount. Put all of the money you save into your New Bedford Share Savings account.
Visit St Anne Credit Union in New Bedford
If you are interested in learning about more ways that you can save money toward a major purchase or to just build good habits to be a better saver, visit St Anne Credit Union in New Bedford and speak with one of our customer service representatives. If you have never joined a credit union before and want to learn the difference between a credit union and traditional banking institution, our team members would be happy to explain the benefits to you over the phone at 508-993-0011 or in-person at our location on Union Street in New Bedford.