4 Tips to Use Credit Union Savings to Plan for Big Purchases

There are a lot of things that we use each and every day in our daily lives that would be considered a “big purchase,” especially when compared to the other items in our monthly budget. A hot water heater, a new refrigerator, a bigger television, a replacement computer or even a brand new guitar – these could all be considered big purchases, not just because of the price tag, but because they are one-time purchases outside the realm of a household budget. However, that doesn’t mean that you should go and apply for credit or max out your credit cards to make these purchase – even if you are getting the best interest rates in New Bedford. Instead, the smarter plan is to start saving and use the accounts available at your credit union in New Bedford to your advantage.

Tip #1 – Create a Budget
How much do you need to save to make your purchase? If you need a new hot water heater, don’t just go for the cheapest option available at your local home improvement warehouse. Instead, think about the best investment that you can make in a new hot water heater that will last you and provide quality services to you for many years. Also consider installation and removal of the old unit, as it can be a difficult and, in some cases, a costly job. The same goes for any other big ticket purchase, including a refrigerator, stove, microwave, dishwasher or other appliance for the home. You don’t want the lowest end, cheapest product because the goal here is to get the best return on your investment.

Tip #2 – Start a Savings Account
To keep the money that you are saving for your big purchase separate from your other credit union savings, experts recommend that you open a secondary account in addition to your New Bedford share savings. Visit your local branch on Union Street and ask a representative about the opportunities available to you at your credit union. Some accounts have bigger incentives and options, however they may have restriction, such as keeping a minimum balance or investing your money for a specific period of time in order to get these optimal interest rates in New Bedford. Your representative can help you choose the best financial solution that will help you increase your savings and achieve your goals.

Tip #3 – Save on Your Terms
How much can you afford to set aside each payday into your savings account? There are a lot of “quick savings” plans online that encourage people to put away $10 a week or more to achieve an end-of-the-year goal. However, if you want to make your purchase in the middle of the year or by a certain date in order to get the best deal, you will likely need to increase your savings beyond those online savings trends. If you can put $50 a paycheck or $100 a paycheck into your savings on a monthly basis, go ahead and do that. If you end up with extra money that you didn’t expect to have and want to increase your savings, go ahead and put that money into the account as well. You can even use online banking at St Anne Credit Union to move money from your New Bedford share savings into another credit union savings plan. Speak with a representative for even more tips on how to maximize your savings potential.

Tip #4 – Have an Emergency Savings
This goes without saying, to stay debt free and maximize each dollar that you make, you should always have an emergency savings that will prevent you from having to raid your big purchase savings account or rely to heavily on credit for your day-to-day expenses. How much savings do you need? Some people like to just keep an extra thousand or two set aside at their credit union in New Bedford for medical emergencies, car emergencies or home repair emergencies. Others like to plan for potential loss of income due to problems at work, in some cases as much as six months’ worth of expenses to include mortgage or monthly rent, car payments, insurance, grocery costs, utilities and other expenditures. However much you decide to save, make sure that your credit union savings is designed to protect you from unexpected situations that could derail your finances.

Join St Anne Credit Union in New Bedford
Put your money to work for you and join St Anne Credit Union in New Bedford. Become a member by opening up a basic credit union savings account. Once you have established a New Bedford share savings account, you can open other types of accounts, including checking, money market, certificate of deposit, retirement savings and more. Give us a call at 508-993-0011 to learn more about our savings interest rates in New Bedford or to find out how to become a member of our local credit union. Membership at St Anne Credit Union is open to anyone who works or lives in Plymouth or Bristol counties in Southeastern Massachusetts.