Skills You Need to Save
KXAN's Studio 512 welcomed UFCU Financial Health Program Manager Monica Muñoz Andry to talk about saving. It’s always a good idea, especially in times like these, to have a financial cushion. That’s not always easy though, talk to us about how to get started?
- Save with a purpose
- Decide an amount and a time frame
- Keep your eyes on the prize
When building your financial cushion, saving with a purpose makes all the difference. It’s easier to stay motivated to save when you know exactly what the end result will be. Maybe it’s a much-needed vacation, a paid debt, or a “rainy day” fund. Whatever your reason, it’s all about being intentional – deciding what you are saving for, how much you need and when you will need it makes all the difference in staying motivated.
What are some good savings options?
- Set up a system that works for you
- Use multiple savings accounts or “set it and forget it”
- Shop for money accounts with no monthly fees and higher interest
Find a system that works for you. Some people like to create multiple savings accounts and name them for the goals they have set. Others like to set up a completely separate account that they don’t access regularly in order to practice the “set-it and forget it” approach and not be tempted to withdraw. Ultimately, you want to shop for accounts that don’t charge you monthly fees and that pay you interest.
What can help us stick to the plan?
Slow and steady wins the race. Set a starting goal that is easy to obtain, almost too easy. That way it will be harder to miss, especially while you are developing a new habit or behavior. Each time you meet your goal, challenge yourself with a higher one.
- Start small
- Increase goal amount step by step
- Purpose + Planning + Time = Savings
For example, if my goal is to have three months of income saved, I need to start with setting a milestone to get there. Start with $500 saved, and then increase the amount to $1,000 saved, and so on until you reach your goal. Saving with purpose really is possible by being intentional, with planning and time.
Was this article helpful?
Thank you for your feedback.