America Saves Week: Join in!

Starting February 24^th, the Kentucky Cooperative Extension Service and other organizations around the country will participate in America Saves Week. This annual event was started by the nonprofit America Saves, which works to raise awareness of how best to save money. The theme for this year’s event is Set a goal. Make a plan. Save automatically. We hope that those who participate in the learning activities provided by America Saves Week will develop the habit of saving automatically for their financial goals.

This year, America Saves Week encourages you to set aside an emergency fund to protect you from unexpected expenses. Saving as little as $500 can help rescue you from the brink of financial disaster. The America Saves organization provides helpful tips for how make savings a habit, so reaching that $500 mark will happen sooner than you realize.

To reach your savings goals quickly, try placing some of your income automatically into a savings account. Try saving ten percent of your paycheck as soon as you are paid. By saving before you spend, you can prevent casual expenses from reducing what you are able to put into your savings account. To increase your savings success, try making short-term savings goals rather than long-term. People tend to find it much easier to save $50 a month than to pressure themselves to save $600 a year, and it amounts to the same thing. Planning a budget to meet a series of short-term goals is also much easier than spreading a plan out over the span of a year or more. Even saving your spare change can help you build an emergency fund. Saving only 50 cents a day will net you over $180 a year! So make it a habit to put your pocket change in a jar, and deposit the jar’s contents regularly.

Don’t forget: One of the best ways to save money is to make your savings accumulate interest. Consider putting your money into a mutual fund or a savings bond. Both of these options reward you just for saving and are great choices for new investors.

READERS, what do you think?

How do you make saving a habit?

Do events like America Saves Week encourage you to become more involved in your finances?

References:

America Saves. (2013). 54 Ways to Save Money. Retrieved from http://americasaves.org/for-savers/make-a-plan-how-to-save-money/54-ways-to-save-money.

America Saves. (n.d.). America Saves Week: February 24 – March 1, 2014. Retrieved from http://www.americasavesweek.org/home-2.