How a Savings Account Can Help Your Money Go Farther
When a financial emergency hits, a healthy bank account helps you deal with the stress associated with unexpected expenses. Unfortunately, a whopping 38 percent of people report they would be unable to easily come up with $500. Start building your savings account today, even if you feel like there's little room in your budget to save.
How Much Should You Have in Your Savings Account?
Your goal for your savings account will depend on your monthly expenses. Experts typically recommend keeping between 3 and 6 months’ worth of expenses in a savings account. For example, assume your monthly expenses are $3,000 a month. To accumulate 3 months of expenses, you'll need $9,000. For a 6-month emergency fund, $18,000 is your ultimate goal.
Don't be overwhelmed by these larger numbers. Even having $1,000 in your savings account will allow you to handle most financial emergencies without having to shuffle your budget or turn to your credit cards.
How Much Should You Deposit to Your Savings Account?
How much you should deposit at one time to your savings account depends on your budget and personal preferences. Go through your budget, track your spending, and determine how you can reduce your expenses. Take any reductions and deposit them into your savings account.
How Often Should You Deposit Money to Your Savings Account?
Most accounts permit unlimited deposits. With online banking, you can transfer money as often as you like. Some individuals like to move "extra" money as soon as possible so they aren't tempted to spend it. Or, you might deposit money to your account every paycheck. You can even automate the process by having a portion of your paycheck directly deposited into your account.
Ways to Maximize Your Efforts
Make sure your hard-earned money doesn’t go to waste by optimizing your savings efforts. Start by ensuring you're using the right account.
How to Choose the Best Account for Your Needs
Make Small Investments
As your money grows, revisit your account selection to make sure you're obtaining the best return on your money. An investment account will help you grow and preserve the purchasing power of your savings.
Optimize Your Budget
Look for ways to lower or reduce your budget. Small amounts will quickly add up. Assume you currently spend $20 a week on breakfast, $15 a week on vending machine snacks, and $10 a week at the car wash. If you can eliminate these items and save the money, you'll add $45 a week to your savings account. This amounts to $2,340 a year.
Open an Account & Start Saving
Open your savings account to get started. If you aren't a member at CCCU, apply online to open your new account. Check out our current interest rates for our top deposit products. Contact us at 702-228-2228 to learn more about the various banking accounts we offer!