The Importance Of Saving

Published on April 27th, 2017

As almost anyone can tell you, saving is difficult but important. Consistently putting away money into your savings, even if it’s just a little bit, is one of the smartest financial decisions a person can make. But when it comes to saving, Americans usually fall short of most economic metrics that are used to advise people toward long-term financial security.

According to a 2016 GOBankingRates survey, 69 percent of Americans have less than $1,000 in their savings account and 34 percent have no savings at all. The same survey found that about half of U.S. families have no retirement savings at all.

Now, these statistics may seem scary but the good thing is that it’s never too late to start saving. However, starting early even with small incremental amounts will contribute greatly to your future financial security. Saving is one of those things that people make tomorrow’s problem. It’s a goal to be met when you make more money, when you have more expenses, when you want to get married or have kids. This could not be further from the truth. Saving early and saving with consistency will set you up well for all those future expenses you want to indulge in. Consider the 50/30/20 rule to plan out your savings. The 50/30/20 rule advises people to split up their budget into three distinct categories.

50: 50% of your budget should be spent on essentials like rent, food, and other necessary living expenses.

30: 30% of the monthly budget can be allocated toward lifestyle choices like eating out and entertainment.

20: 20% of your budget should be prioritized for financial priorities like paying down debts, retirement contributions, and yes, savings.

The 50/30/20 rule cannot be applied to everyone, but it is important to have a budget and a financial institution you trust to keep your money. Leyden Credit Union exists for this very reason.

If you live in Schiller Park, you can rest assured that by banking at Leyden Credit Union, our Financial Services Representatives will work hard to help you make smart decisions with your money. We are here to help you understand the importance of a savings plan and help you implement one that will help you out in financial emergencies, contribute to retirement, or even help you pay for that vacation you’ve always wanted to go on.

If you’re in Schiller Park looking for banking, look no further than Leyden Credit Union. We’re just down the street on 25th Ave. and just south of Grand Ave. Become a member today and get started by opening a savings account. Visit us online or call 847-455-8440 for more information.

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