If you’re like most people, you’ve made resolutions about money that are hard to keep. Here are some tips for getting and staying on track toward your financial goals in 2024.
The Savings Reality
Did you know that only around 40% of families have enough savings to cover three or more months of expenses? The good news: it’s never too late to get on a better path. Your first step is figuring out how much you can save each month.
Start by determining your monthly take-home pay after taxes and other deductions.
- Next, figure out your monthly expenses.
- Then, subtract your monthly expenses from your monthly take-home pay.
- The difference between these two figures? That’s your potential savings.
Now that you know where your paycheck goes every month, let’s see if you can free up some money for yourself.
Essentials vs. Luxuries
Sort your monthly bills and expenses into essentials (like food, rent, medical care, and basic utilities) and luxuries (such as outings, hobbies, and trips).
Take a look at your spending habits within these categories. Small, thoughtful tweaks can make a huge difference. Here are some ways to save without feeling deprived:
- Opt for homemade meals over frequent dining out.
- Reevaluate your phone plan. Maybe you can find a more budget-friendly option.
- Explore cost-effective entertainment choices for quality time with loved ones.
Other Ways to Build Your Savings
Ever thought about making your savings grow on autopilot? Here’s how:
- Automated savings. If you bank online, consider setting up an automatic transfer. This feature regularly shifts a set amount from your current account to your savings, letting your money grow without you lifting a finger.
- Rebates and bonuses. Got a raise or a tax rebate? Think about saving a portion of it. After all, if you were managing without it, you won’t really miss it.
Where to Park Your Savings
Once you’ve started saving, where should you store these funds?
- Savings accounts. With a Save Your Way account at Suffolk CU, it’s easy to set aside funds for something special. You can open your account with just $5, earn competitive dividends on balances over $100, and manage everything in Online Banking and through our handy mobile app.
- Share certificates. These accounts feature all of the reward and none of the risk, with fixed rates that deliver steady growth. Here at Suffolk CU, they’re available in term lengths ranging from three months to five years, and we even have a Liquid Certificate option that offers you fast access to your cash anytime.