Sara Parker, from Utah Central Credit Union walks us through some steps to start saving more and spending less.
Utah Central has assembled a number of resources that encourage frugality and will help all of us save more money. One is the “Encyclopedia of Money Saving Tips” -with hundreds of ideas, and the other is the “Steps to Financial Freedom” workbook – more than 40 pages of timely advice, worksheets and goal setting exercises. Both can be downloaded. Also, we’ve created a list of handy things you can do around the house to save more. Download our “Save Now” handout and stick it on your refrigerator.
Additionally, here’s some tips to get you started:
1. Set up a consistent savings pattern. One easy way is to establish an automated transfer from your checking to savings. Studies show that people who do this are better savers than those who don’t. Commit to a set savings amount: $100, $250, $600, etc. and stick with it each month.
2. Make sure your bank or credit union is covered by federal deposit insurance. (Bank: Federal Deposit Insurance Corporation or www.myfdicinsurance.gov; Credit Union: National Credit Union Administration’s Insurance or www.ncua.gov.)
3. If your savings is in a money market mutual fund sold through a brokerage or mutual fund firm, consider moving your money into the Treasury money market fund at that company.
4. Move all money you need within the next 5-10 years into savings. Money you need SOON does not belong in the stock market.
5. Get the best yield while your money is parked in a savings account. In early to mid-2008, the interest rate on many bank/credit union savings accounts was running as high as 4.25%, then it steadily dropped as the economy worsened. It bottomed out to about 1 % by the end of 2008. Now some savings accounts aren’t earning any interest. Advice: Shop for a higher earning savings accounts if you have the time, otherwise just leave it where it is. It may not be worth your while to get an additional .25% interest but you can find high savings rates by going to www.bankrate.com
Utah Central Credit Union is offering three downloadable documents to help with your savings plan.
Click here to download the Quick Savings Tips.
Click here to download the Encyclopedia of Saving.
Click here to download the Financial Freedom Booklet.
For more information, you can contact your local Utah Central Credit Union or find more online at www.utahcentral.com