Smart Saving: Establishing a Savings Plan.

In a spending-oriented impulse-buying society, it can be difficult to remember to save for the future. Whether it’s a new car, a house, a child’s college tuition, or retirement planning, there are a number of smart and easy ways to put away for a rainy day.

Easy Ways to Start Saving Now!

• Keep a budget: It may feel a little overwhelming at first, but keeping a detailed budget of exactly what you spent money on will show you where you might be able to cut costs. Try writing down everything you purchase for one week and see how much per week you spend on parking meters, lunch, or lottery tickets. Analyze your weekly spending to see if there is anything you can eliminate. In addition, plan out your monthly finances. Budgeting your household every month will not only help you stay on target, but will encourage you and your family to find creative and inexpensive outings and activities.
• Cut out unnecessary spending: Small changes like these can have a long-lasting effect on your wallet.
  
  • Make a cup of coffee at home instead of purchasing one.
  • Make a home cooked meal or a packed lunch instead of eating out.
  • Reduce the amount spent on birthdays, holidays, or vacations.
  • Cut out the extra cable channels you never watch.

  And of course, the more often you do it, the easier it becomes. Changing a routine isn’t always easy, but with tangible results in your bank account, it could be a change worth sticking to.

• Save your change: Does the coin from your last purchase get thrown in the bottom of your bag? Does it fall out of your pocket and get stuck between the couch cushions? Although you wouldn’t think a few pennies could mean anything, those pennies add up. Saving your change in a piggy bank could add up to well over $100 a year to add to your savings account. Many Cape Bank branches offer coin machines to transfer your change into cash, free of charge for our customers. Saving your change is a great way to kick-start college savings, retirement savings, or vacation savings.
• Avoid paying interest: Credit Cards can be both beneficial and dangerous to a consumer. Many credit card users get trapped in the “minimum required payment” loop, which can result in unnecessary or avoidable interest payments. If you use your credit card to make a purchase, try to pay off most or all of the balance in your next payment. This will help you avoid paying interest on your purchase of sometimes 19% or more. Repeatedly paying credit card interest could leave you paying double, or even triple the original cost of the item.
• Make wise purchase decisions: When it comes to larger purchases, shopping around for the best deal can be a big help to your bank account. Make a comparison list; do research on the product; read consumer reviews; try to get the most for your money. When it comes to buying a car, take into consideration the estimated fuel economy and how much you might spend in gas per week; also, check to see if parts are easily accessible to your local mechanic. Sometimes it may be more expensive to have specially ordered parts shipped in. Many companies offer in-store coupons, online coupons, or mail-in rebates. It may seem like a waste of time, but sometimes doing the proper research can yield big results in the savings department.
• Savings accounts: Many institutions, including Cape Bank, offer savings accounts with low minimum balance requirements and you can link your savings account to your checking account for easy transfer of funds. Automatic transfers can also be set up to effortlessly deposit funds into your savings account for worry-free saving. Even transferring as little as $20 a month will get you in the habit of saving instead of spending, and that $20 can add up with Cape Bank’s competitive interest rates. Sometimes not seeing the funds in the checking account will mean they aren’t missed at all. In addition, you can watch your savings grow by accessing your accounts online or through Cape Bank’s mobile apps and stay ahead of bills, payments, and impulse buying.
• Save for emergencies: Nothing puts more Americans in debt than those unexpected costly emergencies, whether it’s new brakes, airfare to see a sick relative, or an emergency cavity filling. Having an emergency savings fund will not only help you bounce back from the financial toll of an unforeseen event, but will also give you peace of mind, knowing you have funds available should anything happen. Getting your whole family involved in the emergency fund will also help you keep the change going. Use the fund as a way to teach your children to save. A few pennies found in the backseat of the car can even be used to start your emergency fund.
• IRAs: As the saying goes, it is never too early to start saving for retirement. With Cape Bank’s competitive Traditional or Roth IRAs, you can easily add a supplemental retirement savings plan to your existing 401(k) or start a new path to your future using a Cape Bank IRA CD. Many IRA contributions are tax-deductible, and staying on-point with your contributions will ensure a financially easy and stress-free retirement. Cape Bank always recommends speaking with an accountant or financial advisor before opening an IRA, as there may be age qualifications, income limitations, or other federal rules and regulations.

More Information

For a wide variety of articles and videos about your financial well-being, visit these government sites:

http://www.mymoney.gov/

http://www.dol.gov/ebsa/publications/nearretirement.html

http://www.sec.gov/investor/pubs/sec-guide-to-savings-and-investing.pdf

http://www.fdic.gov/consumers/consumer/moneysmart/index.html

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