How to Develop a Plan, Benefits and More
Do you have a savings plan? Developing a plan for savings has many benefits including financial security for unforeseen expenses or periods of unemployment, the ability to save for larger purchases like a new car or home, and the opportunity to grow your savings over an extended period of time. Having a savings plan also helps to ensure that you make saving a priority rather than an afterthought.
Whether you are interested in building an emergency fund, saving for a home, planning for retirement or more, CSCU is here to provide guidance and tips to help you achieve your saving objectives.
Here’s a few steps to get you started on developing your savings plan:
Create a budget – To understand how much you can save each month, it’s important to get a big picture view of your financial situation by putting together a budget. To create a budget, first calculate your total monthly income. Then, you’ll want to note all of your essential monthly expenses (rent, utilities, car payment, etc.) as well as any irregular and optional expenses (take out meals, entertainment subscriptions, etc). Once you have these items outlined, you will want to subtract all expenses from your total monthly income to see what funds remain available for savings. Take a look at this sample budget sheet to get started.
Complete a financial review – If you’ve ever wondered where your money goes each month, a financial review of the last 12 months can provide a good overview. You can easily review your activity by looking over your debit and credit card statements online. This can be a great way to identify opportunities to save on non-essential expenses.
Calculate your savings – Use an online savings calculator to determine how much impact your savings will have on your goals. You can revisit your budget as needed to review opportunities to cut unnecessary expenses for the chance to boost your savings further.
Open a CSCU savings account – Your credit union has a variety of savings accounts including Primary Savings Accounts, IRAs, Youth Accounts, Club Accounts, Share Plus Accounts and Share Certificates – to help you start building your savings.
Interested in a little extra guidance to achieve your savings goals? Contact us today to schedule an appointment to discuss your personal financial situation and plan for the future at (209) 444-5300.