Learn How to Build Your Credit Union Savings for a Purpose

savings-goalsWhen you think about building your savings account, it is important to have a goal. Defining your goals, making sure that you have a clear and direct plan, is one of the best ways to ensure that you stay focused on increasing the amount of money you put away in your credit union in New Bedford. Taking the time to think about what it is that you want to do with your savings, whether it be to make a large purchase, invest the money to grow it for another purpose or to pay off debt, can help you make your credit union savings at your New Bedford CU become a real priority in your financial life.

  • One Credit Union Savings Account – Most members usually have a single credit union saving account. They open it up when they become members of St Anne Credit Union in New Bedford and they don’t really put a lot of focus into it. Once they do start using it to build their savings, it becomes a sort of after thought. Sure there are incentive programs that can help you build your savings, such as automatic transfers and the like, but it is important to set goals and stick with them in order to really save. Even if you just have one account, it is possible to save money – you just need to be clear on why you are saving and how much you need to save.
  • Multiple Credit Union Savings Accounts – Another way to increase your savings and to stay focused on your goals is to create multiple savings accounts at your New Bedford CU. One account for holiday shopping can be created with the Christmas Club account option and another account can be used to save toward your child’s college education. Other savings accounts can be used to save toward a down payment on a credit union auto loan or home loan. Speak with a representative at St Anne Credit Union to find out more about the options available for setting up multiple accounts at your credit union in New Bedford.

Different Types of Savings Accounts
In order to help you better set your savings goals and create specific accounts to help you meet them, here are some examples of some of the different types of credit union savings accounts that members will often create. One of our agents at the New Bedford CU can help you choose the type of account that would work best for your needs and provide you with the most advantages.

  • EMERGENCY SAVINGS – Before you start saving money for a specific purchase or event, it is important to create an emergency savings account. This account should only be used in case of a real emergency, such as medical bills, car repairs, home repairs, HVAC repairs and the like. Those things that are unexpected, yet common in daily life. Another approach to an emergency credit union savings fund is to save three to six months worth of living expenses. This can be helpful if you were to become injured and be out of work, lose your job or have some other income related setback. Consider all of your living expenses, including your credit union auto loan, home loan, utilities, groceries and other monthly costs.
  • CASH FLOW SAVINGS – Have you ever heard the expression “living paycheck to paycheck?” The sad truth is that most Americans are barely making it from one paycheck to the next without having to hit up their savings account, take out a paycheck loan or stagger bills in order to make ends meet. Setting aside some money that you can use when you become short on cash can help to avoid this never-ending cycle. Borrowing from one area to pay for another can get you behind on your monthly bills, increase your interest rates and eventually damage your credit. A good amount for a cash flow credit union savings account is $500-1000 just to cover basic day to day expenses.
  • SPECIAL BILL SAVINGS – There are certain bills that we have to pay once or twice each year that can catch us off guard and throw off our regular monthly budget. Putting money aside to cover these bills so you won’t get caught short can help to avoid use of credit cards, dipping into your goal savings accounts or having to borrow from a family member. Include semi-annually insurance payments, property taxes, income taxes, auto registrations, auto repairs and services, plus anything else that you pay a couple times each year, but not monthly. You can create a separate New Bedford CU savings just for these special bills.
  • GOAL SAVINGS – Now that we have all of your basic savings needs covered, it’s time to start working on your goals. A simple share savings account can help you save all the money you need to put a down payment on a credit union auto loan, pay off your debts, make a large cash purchase or pay for a vacation. Goals, dreams – whatever you want to call them, this is where you can really put your membership at the local credit union in New Bedford to work.

Creating a Healthy Savings Plan
Learning how to save and make sure that you have the funds available when you need them is a great way to be responsible with your money. Speak with your representative at St Anne Credit Union in New Bedford about all of the opportunities available with regard to credit union savings and other long term savings and investment programs. Whether you need a basic credit union auto loan or are ready to invest in a CD or money market account, we are here to help.