Sunday, January 01, 2017

New Year, New Look at Your Finances: Saving More With Automatic Drafts

One of the most common New Year's Resolutions is to save more money.  This is the time of the year when people reflect on the past year's spending and vow to do better this year with saving more money.  And that's a good thing!

An easy way to save more money is an automatic draft to a savings account each pay day.  If things are tight, start with a lower amount and then as you see how well your budget tolerates that amount, consider raising it later on. Chances are that you won't even miss it because it will be gone before you notice it --  and you'll be building your nest egg in no time flat.  Don't think that it's not worth saving such a small amount because all those small amounts will add up to a large amount over time.  Be patient and stay the course.

This is also a great way to set aside money for your kids.  We have guardian accounts for our children and access to their accounts on our dashboard.  We can transfer money in on a regular basis to help them build their savings.  When we set up their accounts -- just this past week -- we had them both sit with us as we opened up the account, walk with us to the teller window to make the deposits, and let them keep their gift (a freezer bag with the credit union logo).  This allowed us the opportunity to discuss the importance of saving, setting goals (our daughter wants a car), and how compound interest works.

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