America Saves Week

Nearly 1,000 organizations nationwide are encouraging Americans to save as part of America Saves Week, Feb. 20-27.

Saving money is a key to financial stability and independence.  Fortunately, it’s never too late to start saving.

Independent Community Bankers of America offers a few simple tips to help you boost your savings:

Pay yourself first. Join a retirement plan at work that automatically deducts money from your paycheck. You can also have money automatically withdrawn from your checking account into your savings or an investment vehicle. Many employers offer automatic payroll deduction, one of the best ways to start and keep saving.

Create a spending plan. Unlike a strict budget, a spending plan is a guide to help you take better control of your finances by tracking where your money goes. In a spending plan, you list expenses, compare them to income and then make changes based on your priorities.

Start small. Save your loose change. Setting aside just 50 cents a day for one year can garner you a $500 emergency fund.

Long range, aim to have an emergency savings of six to nine months of living expenses.

Use your credit cards wisely so that you don’t take on too much debt and minimize interest charges.

It is also important to consider these factors in choosing where to place your savings:

• Access. How quickly can you access your money? Community banks are local and use up-to-the-minute technology so that customers can access their money when and where they need it.
• Safety. How safe is your money? At community banks, the FDIC insures deposits up to $250,000 per depositor and $250,000 for certain retirement accounts. No one has ever lost a penny of FDIC-insured funds. Talk to one of us at Bank of Ann Arbor for more information.
• Earnings. How much money will you earn?  Community banks offer personalized customer service tailored to individual needs and savings products and services at rates that are comparable to or often better than larger institutions.

America Saves Week is a nationwide campaign in which a broad coalition of nonprofit, corporate and government organizations help individuals and families save and build wealth. Through information, advice and encouragement, America Saves Week assists those who wish to pay down debt, build an emergency fund or save for a home, education or retirement. Learn more about why saving is so important and how to get started on building a nest egg at www.icba.org and www.americasavesweek.org.