Saving money isn’t just a smart financial habit; it’s an important step toward securing a prosperous and secure future. Mark your calendars! National Savings Day is just around the corner, observed annually on October 12. This day serves as a timely reminder of the importance of saving and the positive impact it can have on our lives. So, take this opportunity to assess your savings habits, set goals, and make adjustments for a brighter financial future.
Solidifying Your Saving Habits
Let’s talk about the financial habits that’ll help you establish greater financial security on National Savings Day and beyond:
- Set Clear Goals – Begin by establishing specific, measurable, achievable, relevant, and time-bound (S.M.A.R.T.) financial goals. Whether it’s an emergency fund, a down payment for a house, a dream vacation, or retirement savings, having clear objectives will give your savings purpose and direction.
- Create a Budget – A budget is your financial roadmap, and if you haven’t created one yet, National Savings Day is the perfect time to do so. A budget helps you understand your income, expenses, and potential savings so you can make the most of your resources. When you monitor your spending and cut back on unnecessary expenses, you can allocate a greater portion of your income to regular savings.
- Automate Your Savings – Take advantage of technology and set up automatic transfers to your savings account. This ensures that a portion of your income is consistently saved before you have a chance to spend it. (If you’re using online financial accounts, be sure you’re always protecting your online financial information.)
- Debt Repayment – While saving is crucial – and it’s what National Savings Day is all about – it’s equally important to manage and reduce any outstanding debts. Allocate a portion of your budget to paying off debts, as this will free up more funds for savings in the long run.
- Build an Emergency Fund – Aim to save at least three to six months’ worth of living expenses in an easily accessible account that is dedicated specifically to emergency financial needs. This fund acts as a financial safety net in case of unexpected events like medical emergencies, car repairs, or job loss. When life’s inevitable curve balls come your way, you can rest easy knowing you have money set aside for just such a scenario.
- Maximize Retirement Contributions – Take advantage of employer-sponsored retirement plans, such as a 401(k), and contribute at least enough to receive any employer match that may be available to you. If possible, consider contributing the maximum allowable amount to maximize your retirement savings.
- Explore Different Savings Options – National Savings Day is also a smart time to educate yourself further on the various savings instruments available, such as high-yield savings accounts, certificates of deposit (CDs), and investment options. Choose the ones that align with your risk tolerance and financial goals.
- Review and Adjust – Saving isn’t something you should only think about on National Savings Day. In fact, it’s important to regularly review your financial situation and make adjustments to your savings goals and strategies as needed. Life circumstances change, and your savings plan should adapt accordingly.
- The Power of Compound Interest – Saving, even small amounts, can grow significantly over time thanks to compound interest. The earlier you start, the more time your money has to grow. Take advantage of this financial phenomenon by starting to save today, even if it’s a modest amount. Every dollar truly does make a difference in your future financial security.
- Seek Professional Guidance – If you find saving to be a challenge or you need assistance in creating a comprehensive savings plan, consider consulting with a financial advisor. A professional can provide personalized guidance, helping you make informed decisions and optimize your savings strategy.
Are You Taking Action on National Savings Day?
National Savings Day is a reminder that every day is an opportunity to enhance your financial well-being through disciplined saving. By adopting sound savings habits and seeking financial guidance, you can solidify your path toward a more prosperous and secure future. Start today, embrace the habit of saving, and watch your financial future flourish.
If you’d like to discuss savings strategies or any other financial topic further, give us a call at (540) 720-5656.
Sources:
Amy Anderson joined the ILG Financial team in 2023 as the client relations coordinator. Her responsibilities include scheduling of appointments, annual check-up notifications, and annuity and required minimum distribution assistance. She is a graduate of Harding University with a degree in Computer Information Systems. Amy and her husband have two children and she enjoys reading, crocheting, music and spending time with her family.
Chase Lopez joined the ILG Financial team in 2020 as an advisor. Chase is a 2016 James Madison University graduate with a degree in management. Chase has been trained under the tutelage of Dave Lopez, who is not only the founder and managing member of ILG Financial, but also is Chase’s uncle and godfather. He also enjoys working alongside his cousin, Megan, who is Dave’s daughter. Chase, as a fiduciary, believes in putting his clients interests first, and building out plans for his clients where they can have a happy and fruitful retirement. He married his beautiful wife in February 2022 and both use most of their free time chasing around their little pup, Aurora.
Jessica Carson joined the ILG Financial team in 2018 as an agent. Jessica and her husband have four children, two dogs, 3 barn cats, 5 chickens, and three parakeets. She indeed loves her children and pets! When not at work, Jessica enjoys playing the piano and cello as well as traveling and spending time outside with her family, hiking, fishing, and boating.
Terri Center joined the ILG Financial team in 2019 as client services manager. She handles client records, application processing, and gathering information to provide a professional and friendly experience with all of our clients. Terri is a graduate of Oakland University. She is married and has two children. She enjoys hiking, family time, and puzzle challenging video games. She also likes to share her creativity in her canvas paintings and sewing projects.
Megan Jones joined the ILG Financial team in 2020 as marketing director. Megan and her husband live in Fredericksburg, VA with their German Short Haired Pointer, Gus. Megan is a graduate of Longwood University and holds a degree in communications. Megan is the oldest of Dave Lopez’s three children and not only enjoys working alongside her father, but also with her cousin, Chase, who joined the ILG Financial team in 2020 as an advisor. When not at work, Megan enjoys sitting on the back porch with family and friends enjoying food and music.