Life can be uncertain. We’ve all experienced that over the last 12 months. Now more than ever, it’s important to save whenever possible. If you have a savings account and find it challenging to add to it, we have some ideas that could help.
Today’s blog from Foundation Credit Union offers some easy ways to increase the balance of your savings account, creating a stepping stone on the path to a more secure financial future.
Income Tax Refund
We’re all tempted to use our income tax refund for fun, like that vacation you’ve been dreaming about or a shiny new car. But that money will serve you better in the long run if it’s placed into an interest-earning savings account.
By automatically depositing your tax refund into your savings account, your refund can begin accruing interest, making your income tax refund go further. This will increase the balance in your savings account, adding to your financial security.
Pay Off Debt
A common question our clients ask is, “Should I put money in my savings account, or should I pay off debt?” The short answer is both — particularly if the debt is in a high-interest credit card.
Credit card debt is usually the most expensive debt you have. By paying off your debt early, it is actually saving you money.
We recommend doing two things:
- Review all of your credit cards and know their interest rates and debt.
- Develop a plan to pay them off and add money to your savings account every month.
The faster the cards are paid off, the less money you spend on high interest that offers no rewards. The end result? More money you can place into your savings.
Setting aside money from your paychecks every month to be directly deposited into your savings account offers a great way to increase your savings account balance. It’s money you can set and forget without feeling the pain of pulling large amounts of money out of other accounts to add to your savings.
Do you have a change jar on your dresser? Take that cash to your bank every month and deposit it into your savings account. It will add up quicker than you think, creating a positive change in your future.
Earn Interest on Your Savings Account
By opening an interest-earning savings account, you can make money on the money you are saving. It’s like being rewarded for your hard work. This is a great way to create an emergency fund or nest egg.
Has an emergency occurred? Maybe an investment opportunity popped up and you need a loan? With our savings secured loan, you can borrow against the balance in your savings account.
Financial Tips by Foundation Credit Union
Foundation Credit Union wants to help you to develop a strong financial position. Consider these tips for how to add money to your savings account to reap the rewards later. Contact us online or call 417.895.2770 for more information on how we can help you achieve your financial dreams.