How to start saving for tomorrow

How’s your savings accounts these days? Are you prepared for a rainy day? Are your retirement funds maximized for 100-percent potential growth? If not, don’t worry and start planning. Here are three ways you can maximize your account growth in various savings products:

Immediate savings

A general rule among financial specialists is to have 3-6 months of immediate expenses saved in an account that you can access immediately. Any less may leave you without enough funds to take care of any financial emergencies, especially if there’s a loss of income. If you save too much in your emergency fund you might miss out on potential investment opportunities.

Long-term savings

If you’re in your 20s, you may not be thinking about retirement but eventually you will. Be sure to take advantage of your company’s 401(k) plan if available. This is especially true if your employer offers to match a certain percentage of your contribution. Ideally, this fund should go untouched until you’re eligible to draw from it without any tax liability. Also, look into IRAs which tax your savings now as opposed to later, when you might be in a higher tax bracket.

Short-term savings

Are you trying to save for something short-term, such as a vacation, new appliances or a special home improvement project? Setting aside even small amounts of money regularly will slowly add up and help you reach your savings goal. Do you want a $500 fishing rod? Save $50 per paycheck for five months and you’re there.

Interested in opening a savings account? Visit www.traviscu.org to review our savings products to see which one might be right for you.

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