If you’re ready to start saving but you don’t know where to begin, Carolina Federal Credit Union can help.
Let’s get started!
Step 1: Set a goal
What’s your secret (or not-so-secret) financial dream? Do you want to open your own business? Explore the Australian Outback? Buy a boat?
What are your long-term financial goals? Early retirement?
Choose your goals and assign a target dollar value to each one.
When you really start saving, first prioritize building an emergency fund that has three to six months’ of living expenses. Thinking of your bigger personal goals now will help keep you focused.
Step 2: Track your expenses and income
Review three months of statements for expenses and all income. At the end of the three months, tally up your totals to figure out the average of each to know how to budget for each budget category.
Step 3: Trim your expenses
If you find that your income exceeds your expenses by a fair amount, give yourself a high-five and skip to the next step.
If you spend more than you earn, or your numbers are too close for comfort, look for ways to trim your expenses, and save that extra cash.
Step 4: Create a budget
Don’t freak out — this isn’t as hard as it sounds. Just take your averages from step 2 and use them to designate a specific dollar amount for each monthly expense. Don’t forget to include savings in your budget!
Step 5: Choose your savings tools
It’s time to choose a place for your savings to call home. For long-term savings, look for an option that offers an attractive earnings rate, like a certificate of deposit at Carolina Federal Credit Union.
Keep that emergency fund and other short-term savings in an account that allows you to make withdrawals, like a money market or checking account at Carolina Federal Credit Union.
Step 6: Make it automatic
Carry out your plans by setting up an automatic monthly transfer from your checking account to your savings accounts!