A personal savings account is like an umbrella on a rainy day, and for consumers like you, there are three common savings habits to weather unexpected financial storms.
Americans are not putting their best foot forward when it comes to saving. Only 28 percent put away the suggested 10 percent of their income, as reported by a 2008 America Saves survey. Saving is not only important for emergencies, but can help you feel financially secure, finance your big-ticket purchases and keep you afloat during retirement. However, the study also revealed that while some Americans save with a goal in mind, only 57 percent are saving enough for retirement.
Here are three easy habits to form for successful saving:
• Save with a goal in mind. Your goal can be to have money for surprises (good or bad) or for something more specific you want or need in the future. Consider short and long-term as well as big and small goals.
• Save with technology. Consider automatic payroll deductions or an automatic transfer from checking to savings accounts. Arrange to have a specific amount transferred to your savings account every pay period, before you have a chance to spend that hard-earned cash.
• Increase savings as your pay increases. If you receive a raise or other windfalls like tax refunds, gifts or bonuses, increase the amount of money deposited into your savings account.
Bankers understand the importance of a financially educated customer. On April 29, volunteer bankers from across the country will take the lead and provide financial education to thousands of students, in connection with the American Bankers Association Education Foundation’s “Teach Children to Save” Day.
No one wants to get caught in the rain without an umbrella, just as no one wants to deal with a financial emergency without the proper funds. Putting money away is the only way to prepare for these circumstances.
