Why You Should Care About Saving
Save your money. By now you have probably
heard it a million times. Your parents probably
tell you to save every time they give you allowance
or every time you bring home a paycheck. If
you’re like most people, saving money
probably doesn’t sound like a lot of fun,
especially when there are cool things to buy
like music, movies, sports equipment, clothes
and… you get the picture. But saving,
however boring it may seem, is essential.
One of the best ways to get that longed-for
independence is to save your money. With well-planned
saving, you can buy a car, pay for college,
get the iPod you’ve been wanting or pay
for that ski vacation with your friends.
Every dollar you save now will make things that
much easier for you in the future. If you have
a sizeable savings account, you won’t
have to worry about going into debt if your
car breaks down or you have to travel at the
last minute for an emergency. Think of your
savings account at the Credit Union as a protective
cushion that can shield you from running out
Make a Saving Plan
So, just because you want to start saving money
doesn’t mean that you can’t still
buy that CD you want or go to the movies with
friends. You just have to make sure you don’t
spend all of your money without setting some
aside for the future. The best way to get going
on saving is to have a savings plan that you
A savings plan can be any plan that helps you
set aside money for later use. Your plan could
be to rent videos instead of going to the movies
and save the money you would have spent on the
theatre ticket for your savings account. If
you have a job or get allowance, a good idea
is to always save a certain amount of the money
you make. A common recommendation is to save
10 percent of your earnings. That means that
for every $100 you earn, you’ll put $10
in your savings account.
Every Bit Helps
You might be thinking that the amount of money
you would be able to save wouldn’t make
a difference in the long run, so you might as
well spend it. This is never true. The younger
you are when you begin saving, the longer your
money can stay in your savings account collecting
interest, or in an investment like a mutual
fund. When you put your money in a savings account
at the Credit Union, it will earn interest and
grow over time.
you are planning to save part of your paycheck,
take the money out and separate it from your
spending money right away so you won’t
be tempted to spend it later.
- If possible, have your employer deposit part
of your pay directly into a savings account
automatically each pay period.
considering a purchase, leave the store for
at least five minutes and decide whether or
not you really need or want the item you are
thinking of buying.
you go out, decide how much you can afford
to spend before you leave the house and take
only that amount with you.
a shopping list before you go to the store
to avoid impulse spending.
for ways to save on things you purchase regularly,
some ideas include:
Buy clothes off-season when they are on sale.
- Go to the library instead of the book store.
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