Saving Practices Made Easy
It's easy to postpone starting to save for a later day, but a solid plan is key to success. By following some basic guidelines, you're more likely to achieve financial security.
Pay yourself first.
Use automated transfers to get in the habit of saving. Money will be transferred from your account without you seeing it, which makes you less likely to miss it. At Garden Savings FCU, we offer a range of high dividend-paying accounts and convenient tools for automatic transfers, ensuring your savings grow effortlessly.
Save 10% of your paycheck.
The general rule of thumb is to save about 10% of each paycheck. If that seems too high, try 5% and work your way up to saving 10% of your earnings. Add 1% every year you get a raise until you reach 10%. With our competitive interest rates and attractive savings options, reaching your savings goals becomes even more rewarding.
Know yourself.
Examine your goals to determine which savings plan will work best for you. At Garden Savings FCU, we understand that every individual has unique financial needs. That's why we offer a variety of savings plans tailored to suit different goals, whether you prefer short term options or are ready to explore long-term commitments.
Realize that age matters.
Always take into consideration how much time you have to save for your goal. If you are a recent college graduate, you have several decades to ride out the highs and lows of the market and can take advantage of more high-risk investments. If you're only a few years from retirement, less risky investments are a better option.
See the benefit of compound interest.
The simplest way you can invest your money is to leave it alone and let it "compound" over time. At Garden Savings FCU, we offer high dividend-paying accounts that enable your savings to grow through compound interest. The earlier and more you save, the more your money will grow, ensuring a brighter financial future.
Use dollar-cost averaging.
This is the process of routinely investing a set amount of money over time, rather than all in one lump sum. It's a convenient savings method, particularly for beginning investors. For example, each month transfer $25 or $50 from your share draft account directly into an investment vehicle such as a traditional or Roth IRA. You reduce your overall risk from market fluctuations because your money buys more shares when the price of a share is down, and your money buys fewer shares when the price of a share is up. Bottom line: You've reduced your investment risk.
Use the Rule of 72.
To figure out how long it will take for your investment to double with compound interest, use the Rule of 72. Divide 72 by the interest rate you expect to receive on an investment. By leveraging the Rule of 72, you can estimate the potential growth of your investments and plan accordingly.
Start your journey to financial security with Garden Savings FCU. Let us be your trusted partner in achieving your savings goals and building a brighter future.
Garden Savings Federal Credit Union
The local credit union in your neighborhood.
A Better Place to Bank.
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