The flowers are beginning to bloom and the weather is starting to hit upwards of 60 degrees each day. What is your Spring Savings Goal?
According to research from The Federal Reserve, more than 40 percent of Americans have less than $400 in the bank to cover an emergency. That means that 4 out of 10 people in this country would have to either borrow money from a relative, pawn an un-needed item or fill out a payday or title loan application to access funds to cover a basic emergency. The typical savings rate for the other 60 percent of the population is recommended to be at least 20 to 50 percent of your income depending on whether or not you are a single income household, double income earning household, or a F.I.R.E. aspiring household.
Now, I know what you’re thinking… Lots of families simply don’t have enough money to save at all… Or so they think. Did you know that your savings goal can be tailored to what you can afford? Then you can establish a basic pattern of savings and work your way up to the ideal savings rate as you learn to create a budget. That includes putting something away at every paycheck.
So if it feels like you’ve been literally devoting every dime that comes in for bills and living expenses, don’t fret. Change begins with YOU! Ask yourself what it would feel like to stash ten dollars from each paycheck away into a savings account. Better yet, use an interest-bearing savings account(which means that you ACTUALLY EARN MONEY) for parking your money with these banking institutions.
Given the advent of technologies like fintech, online banks, which are increasing in popularity over the years are currently offering higher introductory rates than your regular brick and mortar. One popular example is Simple Bank which offers an interest rate between 0.01% and 2.02% dependent upon your personal savings level.
Another popular online bank that I’ve recently discovered has in-person branches in select locations is CIT Bank. Their bank offers different tier levels of APY ranging from 0.1% all the way up to 0.50 % APY for account holders.
Ideally, you’d have at least six months of living expenses in your savings account to cover an unexpected expense. Things happen… such as a job loss, pandemic, new baby, or home repairs. However, don’t let that stop you from reaching your goals.
We all have to start somewhere and something is always better than nothing. So whether you a person who’s never saved a dollar due to overwhelming expenses, a savvy saver who always makes room to contribute to your various accounts each month such as (IRS, long term savings, mini emergency fund, kids college funds, slush fund, etc) or you’re halfway to your F.I.R.E. number, your personal savings goal begins and ends with you.