Plan Ahead. Pay yourself first.
The “Pay Yourself First” principle establishes saving as a priority and encourages sound financial habits. Building your savings is a powerful motivator. It’s empowering! It’s important!
First Things First: Get Emergencies Covered
- Set up a special savings account to save up 3-6 months living expenses as an Emergency Fund. (You can even name the account this!)
- Save at least 10% of your income toward this goal. (If you can’t save that much, start smaller and work your way up. The key is to be consistent!)
- Make it automatic. Set up an automatic transfer or direct deposit to this savings account. Have that money come out as soon as you are paid, then budget accordingly.
If you receive a bonus, gift or tax refund, consider saving that in your Emergency Fund.
This should go without saying, but we’ll say it anyway…. Don’t use your Emergency Fund for anything other than true emergencies! Set up separate savings accounts for other goals.
Get Creative
- Use our cuSaver program to save every time you use your debit card! Just use your debit card to buy your groceries for $78.18 and we’ll transfer 82¢ to your savings!
- If you use cash for purchases, set aside your coins for a special goal. We know of a Dad who paid for his daughter’s wedding by saving all of his dimes beginning when she was born!
Have Some Fun
- Open savings sub-accounts for each of your goals…and name them for motivation!
- Seeing the balance in your Dream Vacation account makes skipping that latte a little easier!
Remember the Basics
Write down your goals. Pay yourself first. Start small and keep it up – it adds up over time!