Make Your Savings Automatic in Three Easy Steps
By Kevin Driscoll, CFP®, VP, Advisory Services, Navy Federal Financial Group
Whether we realize it or not, saving is a natural part of life. It can be as simple as storing leftovers for tomorrow’s lunch, making time to read a bedtime story to your children or leaving room for your favorite dessert. Making a conscious decision to save can be second nature, but that’s not always the case when it comes to finances.
Saving money can be difficult, especially if you’re already on a tight budget. Fortunately, there’s an easy and convenient way to ensure you save consistently: an automatic savings plan. It’s a perfect way to help you plan for the future and tackle big financial goals. Here are a few steps to get you started:
1. Set your goals. Start by identifying your needs, like paying off debt or buying a new car. These are typically more immediate goals, so focus your efforts here first. Then, look at the big picture and think about your financial dreams. These can include saving for a bigger house, an earlier retirement or even a leisure vehicle. It’ll take more time to achieve these dreams, but simply thinking about your plan is the first step you’ll need to make.
2. Make it automatic. There are different ways to automate the process. You can set up periodic transfers from a checking account to a savings account, which is a great way to pay down the balance on a credit card, or automatically transfer funds into a retirement account. Your best bet, however, is to set up direct deposit. That way, you can put funds directly into various accounts as soon as you get paid. This can also help you get in the habit of saving, and you’ll be less likely to miss spending that money to begin with.
3. Ask an expert. An advisor can ensure you’re getting the best bang for your buck by putting money into a savings account, certificate or a longer-term investment account—or if you should be saving weekly, monthly or on pay-period basis. There are a variety of savings options out there, so be sure to coordinate with your financial institution. They can help you start down the right path, or readjust your strategy down the road.
If you haven’t already, consider your options when it comes to making your savings automatic—it’s one of the easiest ways to reach your financial goals.
Registered representatives of and securities offered through Navy Federal®Brokerage Services, LLC (NFBS), member FINRA/SIPC. Investment Advisory Services offered through Navy Federal®Asset Management, LLC (NFAM), an SEC registered investment advisor. Nondeposit investment products are not federally insured, not obligations of the credit union, not guaranteed by the credit union or any affiliated entity, involve investment risks, including the possible loss of principal, and may be offered by an employee who serves both functions of accepting member deposits and selling nondeposit investment products. NFBS and NFAM products are not offered, recommended, sanctioned, or encouraged by the Federal Government. Office of Supervisory Jurisdiction, 820 Follin Lane, Vienna, VA 22180; phone 1-877-221-81081-877-221-8108 FREE; fax 703-206-1510.
- Written by Guest Blogger
- Category: Blog
- Published: 24 February 2016