It's February, and some of us may have already let go of our New Year's resolutions.
Luckily, a resolution to save money is a commitment you can make to yourself any time of the year.
With all the information available, especially on social media, finding financial guidance that works for your situation can be daunting. So we asked Jeremy Blair, VP of Finance at Mountain America Credit Union (MACU), to give us some tips on how to save more money in 2023.
We asked him about the viral videos going around on social media about "cash stuffing" — a trend where you put physical dollars into a container and store it in your home.
Blair says while saving money is a great habit—whether you can save a few or hundreds of dollars a month—and there are many ways to do it.
"We suggest setting up automatic transfers, or deductions from your paycheck, of a set amount into your savings account. Another option is a round-up app. Round-up apps take the difference between your purchase amount and the nearest dollar and put it into a savings account. For example, if you spend $3.50 at a convenience store, the app will round up to $4.00 and put the $.50 into your savings account," Blair says.
When saving money, you should put your cash into a federally-insured account. This protects you from loss should something happen to the financial institution.
Keeping your money in an account can help you avoid the loss of physical dollars and reduce the potential for theft.
Depending on your financial plans, it may make sense to use accounts other than a traditional savings, such as a certificate (which is also known as a term deposit) or a money market account.
These accounts pay higher dividends than traditional savings accounts.
But there are some things you need to be aware of. For example, with certificates, you commit to locking down your money for a period of time—usually anywhere from 6–60 months.
Money market accounts allow you to deposit and withdraw money, and they often come with tiered dividend rates. For example, a money market account with a $2,000 balance may earn less than an account with a $10,000 balance.
We also asked Blair about the trend of people using envelopes to separate their savings for specific goals.
He told us that segmenting cash for different savings goals is a great way to see progress toward each goal.
"We encourage you to use secondary savings accounts to act as digital envelopes. At Mountain America Credit Union, members can open and name their accounts with a clear purpose. Leveraging secondary savings accounts and automatic deposits can be very effective in preparing for upcoming expenses and unexpected or emergency spending," Blair says.
Mountain America Credit Union has various resources to help you achieve your financial dreams.
For a limited time, they are offering a 5.25% annual percentage yield on a 12-month certificate.
To take advantage of this offer, visit macu.com/certificatesor head to your nearest branch.
Insured by NCUA
Minimum balance required—$500 for standard, IRA and Roth IRA certificates; $5 for growth certificates. Membership required—based on eligibility. Penalty for early withdrawal. Fees may reduce earnings.
