Saving for a Reason

Jan 2017 | Financial Education, Savings

We all know we should be setting aside money each payday for a rainy day. But do you have a “reason” coming up where you know you would like to aside funds? Maybe a vacation, event, or large purchase? That is saving for a reason.

Here are 4 simple steps to help you save for your reason:


Step 1 – Name your goal

What do you want to save for? Decide exactly how much money you would need or would like to have to meet your goal. If you’re new to saving, try starting with a small goal.

Don’t just think it, grab a pen and write down your goal. You’re more likely to success if you have a defined goal to save for.


Step 2 – Plan a timeline

How much time do you have before you will need or want your money?  1 year?  6 months?

Whether you want spending money for a trip you’re taking at the end of the year, or need funds to buy books for your soon to be freshman in college – planning when you want/need your money is a crucial step for successful saving.


Step 3 – Calculate it

You can easily be precise in meeting your savings goals with some simple math. In order to reach your savings goal, divide the amount you would like to have by the number of paydays you have until you will need your funds.

Savings goal = ideal $ amount / # of paydays

Say you were saving for a $400 camera to capture the breathtaking views of the PNW. You could save $100 a payday for 4 paydays (saving for 2 months considering you get paid twice-monthly) or $50 a payday for 8 paydays (saving for 2 months).

You can always utilize a savings calculator for the math.


Step 4 – Ask Yourself  

Now ask yourself – is the amount of money you would need to set aside each payday to reach your goal realistic?  If not, it is time to reassess!  Can you get by with less?  Can you push your reason further in the future to allow you the time to save?

Remember that setting defined savings goals will help you succeed. If you find yourself frustrated after planning out a savings goal, don’t get discouraged! Start small, be realistic, and follow though – your future self will thank you.



Now that you know how much you will need to set aside every payday, here is how we can help.

Did you know you can set up separate savings accounts at the credit union so you can watch your savings grow?

These dividend-earning accounts can be opened over the phone or via email without a signature and appear on your credit union bank statement.  Because these accounts are separate from your membership savings account it is easy to keep track the amount you are setting aside for your “reason”.

Have a portion of your paycheck directly deposited to your subsidiary savings account each paycheck –so simple-and watch your savings grow! It’s easy – start saving for a “reason” today! 

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