In the Spring 2014 issue of FDIC Consumer News, the Federal Deposit Insurance Corp. presents consumers with strategies to make saving easier.
The agency suggests consumers have goals so they know what they want to save for and the savings needed to be successful.
For example, if your goal is to save for a child’s college education, research available savings programs and the costs associated with college. For information on college planning generally, see https://www.studentaid.ed.gov/prepare-for-college.
The FDIC urges consumers to research what they spent in recent months. With these data, consider where spending cuts can be made, and if possible direct those funds to savings. Start by reviewing recurring expenses for potential cuts. If you have multiple loans, the agency states it is generally best to pay off the ones with the highest interest rates first.
Many experts recommend consumers maintain an emergency savings fund to meet needs for at least six months of living expenses in a federally insured product, such as a savings account or certificate of deposit.
Save money regularly, including through the use of automatic transfers into savings so you save before you have an opportunity to spend.
For more tips and to read the entire publication, go to www.fdic.gov (type “Savings and Investing for you Future: Questions to Ask Yourself Now” at the search site).