How to start saving ahead for tomorrow

The best way to ensure there’s enough cash in your savings when you need it is by planning ahead. You don’t want to be in a situation where you need access to cash but don’t have it available. Here are a few ways to setup your rainy day fund for the unforeseen bumps in the road ahead.

Examine your budget and plan ahead

Review your monthly budget and see where you can cut down on expenses to grow your savings accounts. This may mean cutting back or switching to cheaper coffee runs that cost you an average of $25-30 per week (when taking into account a high average of $5 per drink and 5 drinks per week) and spending $5 for a container of instant coffee which can last for weeks.

Enjoy heading out with friends on the weekend but spending too much with a $30-$50 on bar tabs? Invite friends over to your home and purchase a 12-pack and watch a game or movie. Saving doesn’t mean you can’t have fun; just make an effort to do it.

Deduct a certain amount each paycheck

A nice nest egg in your savings accounts don’t just happen. Another way to save is to automatically have five percent of your paycheck deducted and deposited directly into your savings account. Using the same approach, open a 401(k) retirement fund at work with automatic deductions into it. If your employer offers to match a percentage of your contribution that’s even better because that match is free money you would not have if you didn’t contribute to the plan. Ideally, start contributing as much as you can into your 401(k). It is never too early to start saving for your retirement, no matter how young you are.

Start a building phase

Keep at your savings for a year and you’ll see how your dedication pays off. Let your nest egg serve as a reminder of what you can accomplish and as motivation not to purchase something you don’t really need, even if you have the cash.

Travis Credit Union offers various ways you can save money. Check out our Savings Account options!

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