Why Paying Yourself is Priority #1
From our friends at GreenPath Financial Wellness.
When it comes to managing your finances and becoming more independent, you have permission to be a bit selfish. And paying yourself first – saving money and setting aside a safety net – is integral for a successful financial future. No one can avoid unexpected expenses or financial emergencies, but you should be prepared, and direct deposit is one way to help you jumpstart your savings.
Think of it this way: “Hope for the best, but plan for the worst.”
Having a savings plan will help you to keep from accumulating debt with credit cards and loans – and can help you to live and be content on a smaller budget. Try putting a small amount into your savings account each month. Maybe you can’t do 10% of your paycheck, but even 5% is better than nothing. This helps you to make saving a financial habit.
Automate your savings.
Most employers make it easier for you to get paid and streamline your savings by offering direct deposit options. There’s no cashing a check, no waiting for your money – your pay comes automatically every payday. You can also schedule automatic transfers from your account to a CD or Money Market Account to help you to earn more.
As you achieve your savings goals, increase the amount you’ve set aside as your budget allows. It’s also smart to contribute as much as you can to your company’s 403b or 401k employer-sponsored retirement savings plan. These funds are taken out of your check before you get paid, so you’re less likely to miss it. Not only will you save for the future, you most likely will experience long-term tax benefits as well.
Want to get started on direct deposit at First United CU?
Learn more at https://www.firstunitedcu.org/direct-deposit/. You’ll need our routing and transit number, which is 272480775.
Source: GreenPath Financial Wellness