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Build a Solid Savings Plan

Dec 1, 2021

Part of the American Dream is to have money set aside. The more you save, the better prepared you will be to enjoy travel, raise a family or retire… while remaining financially sheltered from emergencies. The goals that you set can point you in the right direction. But it’s what you think about saving that will really keep you going. To reinforce your resolve, this post contains several relevant, valuable and fun quotes.

In today’s world, saving is not easy for most people. There are too many quick and easy ways to spend money. As a result, a lot of Americans have been trusting their fate to having around $1,000 in savings — not nearly enough in an emergency! Fixing the problem comes in two parts:

1. Make it a priority. Actor William Shatner of Star Trek said, “If saving money is wrong, I don’t want to be right.” When you prioritize saving, you make the conscious choice to remove those things that devour your resources.
2. Make it a habit. Business magnate Warren Buffet said, “Do not save what is left after spending, but spend what is left after saving.” Make it a practice to weigh the value of every purchase against your dreams.

Budget 101

A Swedish proverb goes: He who buys what he does not need… steals from himself. Follow these simple steps to keep your money safe:

Save first. Honda FCU can help you set up a savings account and then have funds automatically deposited out of each paycheck. You usually don’t miss what you never see.
Watch the small expenses. They can add up. It’s a good idea to plan how much you can spend each month on particular items. Be sure to include “fun” items, such as souvenirs, books, artwork — whatever keeps you smiling. But try not to let these overrun your budget.
Save at any age. English actor Michael Caine said, “Save your money. You’re going to need twice as much money in your old age as you think.” If you’re young, don’t wait until “someday” to put aside funds. Treat saving money like one of your bills. And if you’re older, continue to save for rainy days.
Start where you are. Tennis athlete Arthur Ashe said, “Start where you are. Use what you have. Do what you can.” In other words, don’t use your current situation as an excuse for not saving money. Remember, as founding father Benjamin Franklin said, “A penny saved is a penny earned.” So, the more you save, the more you’ll have.”

Emergency Savings

The expression, “Life can turn on a dime,” deepens in meaning when the sudden change you encounter is matched by a lack of emergency funds. Accidents happen. Job losses happen. Emergency family visits happen. These and other common events can drain your income and add extra stress to whatever has occurred. The good news is, you have time to build an emergency fund over time. The trick is to set up an emergency fund that is separate from your other accounts, even other savings accounts. Decide that it will only be used in a true emergency. Otherwise, don’t touch it.

Save for a Purpose

Trying to set goals? It really helps to know why you’re saving in the first place. Using nothing but monetary numbers leads to simple objectives: I’m going to save $500 by May. It’s good to have a specific number and date in mind, but, for a powerful goal, you should attach it to something with emotional overtones. See how much more meaningful this sounds: I’m going to save $500 by May, so that I can buy a plane ticket to visit my mom for Mother’s Day. Whatever personal, meaningful goal you set, make sure you make it specific, have a timeframe in mind and have a solid purpose that speaks to your spirit- encouraging you to save.

Honda FCU has a variety of options to fit your savings style. From regular savings accounts to a Holiday Savings Club, all the way to Premier Savings accounts with larger minimum balances. If you think you’ll never achieve that, consider the words of Boston Globe finance columnist Charles A. Jaffe, “It’s not your salary that makes you rich, it’s your spending habits.” All of these accounts can help you increase your net worth with automatic payroll deductions. Once you’re fully into the habit of saving in this way, check out Honda FCU’s savings certificates for different purposes, such as IRAs for education, or money market accounts, to take real steps toward fulfilling your dreams.

Referrences:
https://www.federalreserve.gov/publications/2019-economic-well-being-of-us-households-in-2018-dealing-with-unexpected-expenses.htm