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The beginning of a new year is an invitation to look ahead at the goals we want to achieve. For many people, one of those goals is financial stability and growth. An effective way we can accomplish this goal is through building a solid budgeting strategy that emphasizes savings.
Here are a few things you can do to adjust to a new budget and new savings habits so you can build a more stable financial future, including taking advantage of robust credit union savings accounts that can help you achieve your 2024 financial resolutions.
Learn to BudgetBuilding a budget and saving money can slip our minds as we’re going about our day-to-day lives. Learning how to incorporate sound financial behaviors and mentalities can take a little practice, but a few minor adjustments can make all the difference.
One of the first steps you can take toward having a healthy budget is to look at how much you spend. Calculate your monthly income and examine how much is coming in and how much is going out. If there are areas of your spending habits you can cut back on, like eating out or upgrading cellular devices early, that’s money you could be saving.
Decide on a budgeting approach that makes sense to you. The 50/30/20 rule is a popular approach to budgeting. It dedicates 50 percent of your income to needs, 30 percent to wants, and 20 percent to savings or repaying debts. The envelope system is also a common budgeting approach.
Making small changes in your current budget is a great place to start. For example, set a small savings goal and follow through until you reach that amount. Experiencing financial success by achieving your goal can help you feel accomplished, making the experience of budgeting enjoyable and memorable.
Open a Checking or Savings AccountThere are several reasons you might want to have a checking or savings account. A checking account can make it easier to track your budget and make minor adjustments. Maybe you’re interested in a savings account because you want to be prepared for health emergencies, or maybe you want some money set aside for more travel or home upgrades. Your reasons for opening your account(s) are as unique as you, which means you need an approach that is tailored to your lifestyle and goals.
At Capital Credit Union, we offer a multitude of accounts designed to help you save more money. If saving more money each month is on your mind, keep reading for the types of savings accounts available so you can decide which one makes the most sense for your budget.
Types of Savings AccountsThe kind of credit union savings account you open can vary based on how you plan to use your savings. It can also impact how much your savings can earn for you. Membership and regular savings accounts, for instance, offer a safe place to store your money and require only a small opening deposit, often as little as $5. A money market account, on the other hand, will typically have a much higher dividend rate and APY than a traditional savings account but will require a larger deposit to open.
If you’re looking for an account to “park” your money in, consider a share certificate. Certificates have higher earnings and fixed rates for the duration or term of the account. Unlike a money market or traditional savings account, however, there may be a penalty fee if you access your money during the term.
IRAs, or individual retirement accounts, are perfect for planning your retirement. At Capital Credit Union, we offer two different approaches to retirement saving: traditional and Roth IRAs. A Roth IRA allows you to make after-tax contributions if you expect to have a higher tax bracket when you begin making your withdrawals. A traditional IRA may allow you to make pre-tax contributions if you will be in the same or a lower tax bracket when you begin to withdraw from the account.
A health savings account, or HSA, is ideal for setting aside money for medical expenses. Money spent from your HSA is tax-free and rolls over each year so you never lose it.
Ask for HelpLearning how to budget might not come easily to everybody, so it’s okay to ask for help from a friend, family member, or financial adviser. At Capital CU, we support members and the public with free financial education classes. Online education classes are also available and full of important information about taking charge of your financial well-being.
If you prefer an in-person touch, Capital Credit Union has 24 branches across northeast Wisconsin, with all lobbies open Monday through Friday, and three locations open on Saturdays until 12:30 p.m. Call ahead to set up a free appointment with a financial expert who can answer your questions and help you pick an account that matches your lifestyle and budget.
Choose a Financial Institution You TrustYour financial goals matter, and you deserve a financial institution that respects how important your goals are. When choosing an institution to entrust your finances to, research the history of that institution. Compare rates and types of accounts available to you. Find out if the institution is federally insured and who it is insured by. Credit unions are typically federally insured by the National Credit Union Administration, or NCUA.
Consider the differences between different financial institutions, like credit unions and banks. Credit unions are not-for-profit institutions designed to bring a personalized touch to the financial needs of their community members. Membership at Capital Credit Union is available to community members who live, work, attend school, own property, or own/run a business in Brown, Calumet, Door, Kewaunee, Manitowoc, Marinette, Menominee, Oconto, Outagamie, Shawano, Waupaca, or Winnebago counties in Wisconsin.
Budgeting can feel intimidating at first, but it is rewarding in more ways than one. A sense of financial stability brings peace of mind. You can rest easy knowing you’re ready for whatever life brings you. If you’re looking for a financial institution that values your trust, your goals, and your future, we invite you to join our community at Capital Credit Union.