America Saves Week Starts February 21st!The Securities Division is proud to announce our support of America Saves Week for another year!
Since 2007, America Saves Week has been an annual celebration as well as a call to action for Americans to commit to saving successfully.
Through the support of thousands of participating organizations, including our division, this movement is used to encourage individuals to do a financial check-in that allows them to get a clear view of their finances, set savings goals, and create a plan to achieve them.
This week’s focus on saving will highlight the following strategies:
- Monday, February 21, 2022 | Save Automatically
- Tuesday, February 22, 2022 | Save For The Unexpected
- Wednesday, February 23, 2022 | Save For Retirement
- Thursday, February 24, 2022 | Save By Reducing Debt
- Friday, February 25, 2022 | Save as a Family
Keep reading for our blog that explores how to ‘Save Automatically,’ and remember to check back in throughout the week as we review each daily theme.
How To Save Automatically
Automatic savings simply means you have a process in place to save at regular intervals, whether that’s monthly, weekly, or daily.
If you want to save automatically, we suggest one of these three strategies:
- Split to Save. Instruct your employer to direct a certain amount from your paycheck each pay period and transfer it to a retirement or savings account (or both). Traditionally, you can set this up using your employer’s direct deposit. Ask your HR representative for more details and set this up today. We call this method “Split to Save.”
- Auto-Transfer. Every payday, your bank or credit union transfers a fixed amount from your checking account to a savings or investment account. Talk to your local bank or credit union about how to set this up.
- Scheduled Transfer. Choose a day of the month or a regular interval, such as every 2 weeks, to transfer a set amount from your checking account to a savings account. We particularly recommend this method for people with pay that varies, such as freelancers and those working in the gig-economy. Consider picking a lower dollar amount or a time of the month when many other automatic payments aren’t happening. You can also set this up with your bank or credit union.
Not able to set those up because you’re paid by a physical check, in cash, or currently not banking with a financial institution? You can still make saving a consistent habit!
- Save your loose change. Every day, put all the loose change from your pocket or purse into a jar, and don’t spend it. If that jar starts to look tempting, take it to a local, federally insured bank or credit union to cash and deposit into a savings account with low to no fees. However, if you’ve got a big jar: there’s no harm in watching your automatic savings pile up – literally!
Why Automatic Savings Works
Over time, these automatic deposits add up. For example, $50 a month accumulates to $600 a year and $3,000 after five years, plus the interest that has compounded. Soon you will be able to cover many unexpected expenses without putting them on your credit card or taking out a high-cost loan.
I Don’t Have Enough Money To Save
If you’re still in the stage of your savings journey where you’re reducing debt (which is saving!), then visit our resources to help you pay down debt.
Remember, even while you’re actively reducing debt, everyone can start to save, even if it's a small amount. We like to say, “Start Small, Think Big.” Start with only a small amount, and commit to saving daily, weekly, or monthly. Over time, your deposits will add up. Even small amounts of savings can help you in the future!
If you’re ready to start your savings journey but not sure where to begin, check out “7 Steps to Jumpstart Your Savings Journey.” Then, take the America Saves Pledge. Let us be your savings accountability partner by sending you tips, tools, and resources to help encourage you to stay on track.
For additional information on this topic, check out our video on this theme!
Rachel Carden serves as the Director of Investor Education for the Securities Division of the Tennessee Department of Commerce and Insurance.