Savings Strategies for Success

Life is unpredictable. It doesn’t matter how much you plan; sometimes, things pop up that can be very expensive! Having money saved for planned and unplanned events can help you manage financial stress.

Here are four ways to help you start building your savings:

      1. Emergency Fund

An Emergency Fund is exactly what it sounds like – funds to have in case an emergency happens. With this type of savings, you put money into an account and do not touch the funds. For instance, if your refrigerator dies or you have an unexpected medical expense, you can pull money from the emergency fund to cover those costs.

      2. The “I can touch” Fund

The “I can touch” Fund is for planned expenses. These are for things that aren’t necessities, such as gifts, travel, or beauty appointments. When the time comes for a holiday or a birthday, you know you have money for gifts.

      3. Goal or Purchase Specific Savings

This type of savings is to put money towards something specific, such as a wedding or a car. Figure out your price and timeline until the purchase and break it down by monthly or weekly payments to your savings account.

      4. Retirement Savings

When considering retirement, you might want to consider investing money rather than putting it in a standard savings account. Invested money has the potential to earn more interest than a traditional savings account offers.

MVCU has the tools to help you save!

1. Direct Deposit. Your payroll check can be divided across multiple accounts! You can have a portion deposited directly into a savings account and the rest into a checking account, so you know your savings account will grow. You decide what works best for you. Learn how to set up a new Direct Deposit.
2. Savings Goals. For those financial goals such as saving for a wedding or a car, you can create savings goals in Online & Mobile Banking.
3. Certificates. If you have a long-term goal and want to earn interest at a guaranteed rate, a certificate may be the right fit. Remember, once the money is deposited in the certificate, you can’t withdraw it early without penalty. Make sure you choose a term that you’re comfortable with!
4. Retirement and Investment Services. Merrimack Valley Retirement & Investment Services can help you make the right decisions for you.

No matter what savings option fits your lifestyle, MVCU has many options to help you reach your goals!