Saving a little adds up over time

Posted on May 3, 2011. Filed under: Mary Kropp, NMLS #501069 |

Very few people actually save money.  For many of us, the thought of saving money seems impossible.  Some common questions:

How can I start to save money?

Where is the best place to keep the money being saved?

How will I know the money will be available when I need it?

 Here are a few tips:

  •  Visit Denmark State Bank to open and explore the best savings option for you. (Regular savings, money market savings, holiday club account, certificate of deposit or IRA). The type of account you open will help ensure the money is where you need it.
  • Set goals. Set both long term and short term goals which are realistic and attainable. Short term savings should be used for things like new furniture, a down payment for car, a vacation or money for holiday shopping. Long term goals should include college education, retirement or a new home.
  • Set a small amount to start and have it taken out of your paycheck automatically.  Try to increase it every six months.  Success in savings comes with a thought-out plan.
  • Write down and track all your expenditures for one month.  This will give you a starting point to a budget.  Saving is merely spending less.  

            One bag potato chips        $3.29/bag     1/ week         $171.08 per year

            One-six pack soda             $2.00            1/week          $104.00 per year

            One gourmet coffee          $4.00            1/day             $1,460.00 per year

Simply cutting back on a few items like the three listed above could save $1738.08 a year.  Over the course of 5 years at a 1% return, you would have saved approximately $8,798.00. (See Denmark State Bank’s website at www.denmarkstate.com  for financial calculators). 

 Member FDIC

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