3 Ways To Become A Better Saver

2021 is moving right along! Whether you have already put your New Year Resolutions into action or not, one thing that everyone should start striving towards this year is growing their savings account. A study from GOBankingRates revealed that roughly 69% of adults in the United States have less than 1,000 dollars in a savings account, which causes a bit of alarm. Having a savings account that is actively accumulating money is extremely important, especially for those moments in life when unexpected and unavoidable situations arise. Although many people do understand the importance of having a savings account, the question of how to budget and save money can pose a real challenge to those who have yet to get started or those who struggle with how to manage money successfully. Our saving specialists have just the solution on how to help you save money more efficiently by following the three simple steps below.

Pay Yourself First

We have all witnessed or experienced first-hand a financial struggle. With all the insecurity in the world today, one thing that should be secure is an emergency saving or a rainy-day fund, which a savings plan such as our iSAVE Savings account can help achieve. It’s critical to pay yourself first before paying others, which not only makes you feel good having some money set aside, but allows you to understand how to budget and save money more efficiently when it comes to other expenses such as mortgages, utility bills, etc. Before others get a crack at your hard-earned money, reward yourself with a cut. For example, if you get paid bi-weekly, set aside a $100 from every paycheck for deposit into your iSAVE savings account before any bill gets paid and after just one year, $2,400 will be accumulated for your rainy-day fund and that doesn’t include any dividends earned! After all, you are the one working extremely hard for it.

Make It Automatic

Let’s face it, when the money hits your checking account it’s going to be spent. But, if you set up an automatic distribution to hit your savings account first, it makes it more difficult to spend. With an automatic savings plan, you won’t be seeing the deduction take place. It’s “out of sight, out of mind”, and productively forces you to save. Even if your employer won’t allow multiple distributions, the savings specialists at BHCU have solutions to set it and forget it, it’s that simple.

Identify Spending Habits

It’s always a great time to get into the routine of mindfully spending and saving where you can. By paying yourself first and making it automatic, you quickly learn to work with what you got! You get into the habit of spending less because your budget appears less. This helps to identify old spending habits or items frequently purchased that may be able to be cut back. Once you adjust to living on your new budget, you may find opportunities to save more!
For these reasons and many more, it’s time to create an automatic savings plan by opening an iSAVE Savings account with BHCU today! To learn more about how to save money and how to manage money more effectively, contact us today.