couple saving money

Is Saving Money Truly Important?

Is Saving Money Truly Important?

Yes, saving money is truly important! According to a 2019 Bankrate survey, a mere 18% of Americans have six months’ worth of living expenses saved? While many factors contribute to individuals not saving, we believe that we can empower ourselves to make the changes that are in our control and that will benefit our financial situation.

Who should be saving money?

Everyone should be saving and it’s never too late to start! Introduce your children to the concept of saving with our KidsPlus resources. They’re super fun and an engaging way to teach your children concepts they’ll use their entire life.

If you’re a teenager, you’ll want to save for college, a car, or your first apartment. If you’re an adult, you should be saving for an emergency fund, retirement, and any lifestyle changes such as obtaining a mortgage, or starting a family.

Did you know? Three in ten adults have no emergency savings at all.

When should I start saving money?

Plan to start as soon as possible—even today. Getting started is the hardest part but small steps will literally add up. Plus, the sooner you start, the sooner you’ll feel a sense of ownership and accomplishment which will propel you towards your goal. Be your own motivation and get the ball rolling!

  • Today: Place some change in a jar or at least $1 into your savings account.
  • This week: Aim to have at least $5 saved.
  • This month: Make a concrete plan with actionable steps and goals.

Why should I save money?

When you proactively and consistently set money aside, your future self is being set up for success. You also benefit in the present. Here’s how:

  • Less stress and anxiety
  • Cover emergencies: home or auto repair
  • Unexpected events: medical bill, relocating for a job
  • Lifestyle changes: job/salary change, getting married, having children

Did you know? Nearly 40% of Americans would need to borrow money to cover a $1,000 expense.

How should I start?

The action steps after your plan has been created is undoubtedly the hardest part. There are two main ways: earn more money and spend less—or both. Also consider setting aside a percentage or certain amount in situations such as:

  • Salary increase/raises
  • Inheritances
  • Tax refunds
  • Gifts from holidays, birthdays, graduations, etc.

If you want saving to be seamless (who doesn’t?), we suggest updating your Auburn Savings checking account to include Simple Change Savings. This program rounds up your debit card purchases to the nearest dollar amount that you choose and automatically deposits the change into your checking or savings account.

No matter your current age or financial status, we hope you recognize the importance of a solid savings plan. It’s integral to your present wellbeing and your future financial situation.

 

 

Sources: Bankrate

https://www.bankrate.com/banking/savings/financial-security-june-2019