Tom: What about tips to save during the rest of the year?
Mellody: The great thing about America Saves Week is the broad range of events it provides over 5 days. There are question and answer sessions on Twitter – Experian will host one about credit scores and credit history, and there is one scheduled on insurance questions – along with Facebook events and webinars that will cover everything from investment basics to financial organization tips.
That said, the two areas of focus beyond tax season during America saves week are budgeting goals and automatic saving. When it comes to budgeting, tax season is a great time to start because you have assembled all of your financial information in front of you, and you should seize this opportunity to take a hard look at how much money you bring in and how you spend it. Once you know that, you can then set goals, whether it be to start an emergency fund, or save for a car. Planning is the first step.
And when it comes to goals, one should be to automatically save. When you do this, saving becomes so much easier. Talk to your HR representative at work to have your employer deduct a certain amount from your paycheck and transfers it to a retirement or savings account. If you are already making contributions, try to increase it by $50 or whatever you can afford. If you don’t have a sponsored retirement account or direct deposit, ask your bank or credit union to transfer a small fixed amount from your checking account to a savings or investment account. You will be surprised how this will add up over time. Just $50 a month accumulates to $600 a year and $3,000 after five years, plus interest that has compounded.
Tom: Where should we go to learn more about this?
Mellody: America Saves Week is packed with great resources. To learn more, go HERE. You will find a treasure trove of information about saving strategies, places you can go for assistance with your taxes and your retirement, and any number of other questions you might have. In the end, next week is a great time to take advantage of great resources and start on a new path to savings, or get back on the path!
Tom: It sounds like a great week, Mellody. Thanks for joining us!
Mellody: You are welcome, Tom.
Money Mondays: Take Advantage of ‘America Saves Week’ To Get Into The Saving Habit was originally published on blackamericaweb.com