WXYZ — This week is “America Saves” Week – and helping people save money is what it's is all about!
SAVE ON THE BIG 3!
One of the best ways to save money is to lower your biggest monthly bills and save the difference.
The three biggest monthly bills the average American has are housing, auto and debt. If you own your home, now is a great time to refinance and lower your monthly mortgage payment. Talk to your local credit union today. If you have an auto loan, you may want to refinance it while rates are low. CCF offers a 90 days no pay even on refinanced vehicles so you could take 3 months of auto payments and put them right into your savings account. You may also want to look into consolidating credit card debt to a lower rate card. Credit Unions offer some of the lowest credit card rates or even consolidation loans to get your debt payments under control.
PAY YOURSELF FIRST!
Set up an automatic transfer to your savings account the day after your paycheck arrives. You also want t make your savings transfer like a bill you need to pay each month. As you save money by refinancing and lowering your monthly bills, increase that savings “payment” as often as you can.
CURVEBALL FUND vs EMERGENCY FUND
A Curveball Fund is a good place to start saving. It is the savings account attached to your checking for easy transfer when you need a little extra or life throws a curveball like a flat tire or an unexpected bill. A good goal to aim for is to keep $1,000 in this account for each family member. Once your Curveball Fund is funded, start saving for your Emergency Fund. It's a savings account with 3-6 months of expenses saved and should be used only in an emergency. The fund is not attached to your checking account, so you’re not tempted to dip into it – that’s what the Curveball Fund is for. An Emergency Fund should be deposited in a high-rate savings account so you can earn interest and access it within 24 hours if you have an emergency need for funds. Add up all your monthly bills and times it by 6 – that should be your Emergency Fund savings goal.
Don’t feel overwhelmed with the totals – just start. Savings money takes time and discipline, but you’ll be glad as you see those dollars grow.