America Saves Week 2023 – Day 1
WHAT IS AMERICA SAVES WEEK?
Since 2007 America Saves Week has been an annual celebration as well as a call to action for everyday Americans to commit to saving successfully. Through the support of thousands of participating organizations, together we encourage individuals to do a financial check-in that allows them to get a clear view of their finances, set savings goals, and create a plan to achieve them.
DURING THE WEEK, WE’LL BE FOCUSING ON THE FOLLOWING THEMES:
Monday, February 27, 2023 | Saving Automatically
Tuesday, February 28, 2023 | Saving for the Unexpected
Wednesday, March 1, 2023 | Saving for Major Milestones
Thursday, March 2, 2023 | Paying Down Debt is Saving
Friday, March 3, 2023 | Saving at Any Age
Save Automatically – Day 1
The easiest and most effective way to save is automatically. Think about it, this saving automatically is the exact same way that millions of employees save through 401(k) and other retirement programs at work. So, taking that same concept— that you can “set it and forget it” and adjust to money going directly into savings would work for ANY savings goal you have— including saving for an emergency fund, homeownership, education, or even a vacation.
HOW TO SAVE AUTOMATICALLY
Automatic savings simply means you have a process in place to save at regular intervals, whether that’s monthly, weekly, or daily.
If you want to save automatically, we suggest one of these three strategies:
- Split to Save. Instruct your employer to direct a certain amount from your paycheck each pay period and transfer it to a retirement or savings account (or both).
- Auto-Transfer. Every payday, your bank or credit union transfers a fixed amount from your checking account to a savings or investment account. With Citizens Bank Bill Pay, you can automatically set an amount to be transferred!
- Scheduled Transfer. Choose a day of the month or a regular interval, such as every 2 weeks, to transfer a set amount from your checking account to a savings account. We particularly recommend this method for people with pay that varies, such as freelancers, Realtors, etc. Consider picking a lower dollar amount or a time of the month when many other automatic payments aren’t happening.
Save your loose change. Every day, put all of the loose change from your pocket or purse into a jar, and don’t spend it. If that jar starts to look tempting, bring it to the bank and deposit into a savings account. However, if you’ve got a big jar: there’s no harm in watching your automatic savings pile up- literally!
WHY AUTOMATIC SAVINGS WORKS
Over time, these automatic deposits add up. For example, $50 a month accumulates to $600 a year and $3,000 after five years, plus interest that has compounded. Soon you will be able to cover many unexpected expenses without putting them on your credit card or taking out a high-cost loan.
I DON’T HAVE ENOUGH MONEY TO SAVE
If you’re still in the stage of your savings journey where you’re reducing debt (which is saving!), that’s okay! Set up Bill Pay and make a plan to pay down debt and later snowball that amount int oa savings account.
Remember, even while you’re actively reducing debt, everyone has the ability to start to save, even if it’s a small amount.. Over time, your deposits will add up. Even small amounts of savings can help you in the future.