Fall into Savings
Saving as the Holidays are beginning can be tricky, so we’ve laid out a few guidelines of how to plan for the spend-a-thon. There are lots of avenues you can take in order to save and we wanted to make sure you knew your options.
Did you get a raise? Good for you! Boost your 401(k) or IRA contribution by at least 2%. You’ll get a little extra in your paycheck while putting most of your raise to work for your future. If you were counting on some of that to help with the bills then by all means, use it as needed. Anything that is not being used towards your needs, go ahead and divert to your savings.
Automatic deposits are the way to go
Set up automatic transfers, and you likely won’t miss the money when it’s moved from your paycheck to your retirement fund or from your checking account to savings. Make sure you’re not regularly reminded that you have this money. Set up savings accounts separate from the one that has your checking account, then you’re not seeing your savings balance every time you log on. Sign up for paperless statements for retirement accounts, and then don’t check them more than once or twice a year. You can also divert money through small reductions in spending. For example, if you cancel a subscription divert that monthly payment into savings.
Label your accounts
Labeling an account with its purpose can be a powerful deterrent to tapping the money for other uses. Online banking allows you to set up multiple sub-accounts at no extra cost, and each one can be given a name: vacation, property taxes, new car fund, holidays and so on. The names make you think about what you’re really sacrificing when you spend the money thoughtlessly. You may not be able to rename your employer retirement fund, but you often can input nicknames for IRAs and other brokerage accounts.
Get a Coach
At Solidarity, we’ve created a financial coaching center for you to become financially literate. Everything from building an emergency fund to life insurance and mortgage types, we can help you with the basics and beyond. Learning to save means learning all about money skills and we’ve got the tools and resources to guide you.
Whatever plans you have to trick yourself into saving back a little money, make sure you are banking with Solidarity.