Simple Ways to Build a Savings Account
Nearly half of Americans don’t have a rainy-day fund to cover unexpected expenses. Gary Shook talks about simple ways to build a savings account.
Most of us have been taught since we were children that it's important to save for a "rainy day". While this is good advice, the fact is that many Americans do not have money saved to help get them through rough patches in their financial lives.
Certainly the economic downturn has diminished some families' savings accounts. But, a recent study revealed that 47% of Americans said their household could not come up with $2,000 in 30 days without selling some possessions. Think about that for a minute - nearly half of this country doesn't have enough money saved to cover an unexpected expense of $2,000.
I know it's never easy to save. In addition to the regular bills each month, there are always things we want and things we need that keep us from putting money away for that "rainy day". There is certainly no shortage of good advice when it comes to saving money, but one of the best ways I know is to "pay yourself first".
One simple way to pay yourself first is to set up a monthly automatic transfer from your checking account to your savings account so you are saving regularly. You can schedule a transfer anytime during the month that's best for you - perhaps on the 15th of the month to coincide with a payday. Just a small amount each month can add up to a lot over time in an interest bearing account.
Our new Round-Up Savings program is another easy way to save. When you enroll in this free service, every debit card purchase posted to your checking account is rounded up to the nearest whole dollar and the difference is transferred into your savings account.
For example, when you buy your morning latte for $3.75, your checking account is charged $4.00 and $0.25 is transferred to your savings account. These small transfers add up quickly and they are a simple way to build your rainy day fund. You can find out more about Round-Up Savings by clicking here.
At Middleburg Bank, we are committed to helping our clients achieve their financial goals. We know that saving money to pay for future purchases or unexpected expenses is part of a smart financial plan.
Let us help you get started saving or make more of the savings you already have. Just call, click or come by any of our financial service centers to get started today.
Gary R. Shook
President & CEO