Savings Cushion Gives Soft Place to Land During Economic Downturn
In today's economy, being financially prepared for unexpected and infrequent expenses is more important than ever. But a 2008 survey by the American Savings Education Council revealed that only 28% of Americans set aside at least 10% of their income--the amount experts recommend.
"People who have a comfortable cash position--a reserve fund--can ride out the bumps in many situations. Cash is what gets you through the hard times." says Connie Kilmark, a financial counselor and consultant in Madison, Wis.
To help build savings:
- Pay yourself first. NACHA, the electronic payments association, Herndon, Va., surveyed 1,505 people by telephone in 2006. The survey revealed that those using direct deposit save $390 a month, $90 more than those saving manually. It's not magic--it's being consistent instead of random in your savings patterns. Direct deposit is convenient, safe, timely, and environmentally safe.
- Save your tax refund. Use it to help build a savings fund for budget challenges. Use it to cover unexpected as well as anticipated expenses, such as insurance premiums. Pay down debt so you can save even more money in the future.
Make saving a habit and you'll be ready for any financial challenge that comes your way.
Leominster Credit Union can help you set up a plan to help you meet your savings goals. You'll be surprised how much peace of mind you'll gain when you have emergency savings to fall back on. Stop by or call us at 800-649-4646 today.
Copyright 2009 Credit Union National Association Inc. Information subject to change without notice. For use with members of a single credit union. All other rights reserved.