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Savings Goals Begin With Emergency Fund
Savings goals begin with having enough for emergencies, then move on to having enough to see you through a job loss and, finally, to having enough for retirement. A new study finds that most Americans aren’t even getting past the first stage.
Most Americans Have Inadequate Emergency Funds
The author of the study, Bankrate, recently found that 63% of Americans can’t afford a $500 car repair or a $1,000 emergency room visit.
Just 37% of U.S. adults have enough savings to pay for these unexpected expenses.
In times of emergency, 23% say they would reduce their spending on other things to make ends meet, and 15% would use credit cards.
Fifteen percent would have to borrow from family or friends, Bankrate said.
This is a grim set of findings. Having enough saved for emergencies is not only the first big goal of saving, it is also the one that offers immediate relief to financial stress.
Reduce Your Stress
You can certainly sleep better at night knowing that you have enough cash to handle life’s emergencies.
Of course, the lack of emergency funds in Americans’ accounts only serves to highlight the larger problems people are having later in life, when they need funds for retirement.
At Mid Oregon We Can Help
If you’re in the same boat as these 63% of Americans, you need to have a savings plan. You’d be surprised at how much you can save each day/week/month just by making a few simple changes.
Mid Oregon Credit Union can really help you to put that plan together. CU professionals are experienced in these matters after all, and we will be happy to sit down with you and map out a strategy for achieving short, medium and longer-term savings goals.
Our Savers’ Club is the perfect tool to get started in building your emergency fund, or for any other short & medium term savings objective you might have. For longer term goals like retirement, we have the professional support you need there too.
So, come and see us at Mid Oregon, It’s the start of a new year, so there’s no better time than now to reduce your financial stress levels.
New Year’s Resolution: See Your Credit Union
A Fresh Start With Mid Oregon
We all want a fresh start in 2016, and many of us make resolutions about changes we want to make. If any of yours involve money, make an appointment next week to see Mid Oregon Credit Union.
If you haven’t yet joined a CU, do so now. You will start the year right, and enjoy the benefits of not-for-profit, member-owned community banking for a lifetime.
Significant Financial Benefit
The Credit Union National Association (CUNA) estimates that Oregon credit unions provided over $115 million in direct benefits to the state’s over 1.5 million members during the 12 months ending September 2015. Read the report.
These benefits are equivalent to $74 per member or $141 per member household.
As an example, financing a $25,000 new automobile for 60 months at an Oregon credit union will save members an averge of $151 per year in interest expense compared to what they would pay at a banking institution in the state.
Already a Member?
If you are already a Mid Oregon member, now is the time to sit across a table with someone who can turn your financial resolutions into actionable plans.
Remember, plans become more real when you share them with someone else. A professional at your CU will look over your spending and saving records from 2015, and help you find ways to make improvements.
You know you need a savings plan, with a set target for saving each month. Put that plan together now, before the craziness of life takes over — and suddenly it’s summertime.
A Good Plan
There’s no real magic to building financial security, and eventually, wealth. All it takes is a bit of discipline, and a good plan well followed. Over time, you’ll see the magic of compounding interest at work. Your money will literally be working for you.
So, make that appointment to see your credit union this week, before 2016 starts getting old. Contact us at (541) 382-1795, email to beheard@midoregon.com or visit one of our 6 Central Oregon offices.
Holiday Spending Is Getting Smarter, But You Can Be Smarter Still
Smarter Holiday Spending?
The average American will have spent nearly $900 on holiday presents this year. If you have two adults in your household, that’s almost $1,800. In looking at the sales numbers from the Black Friday-Cyber Monday weekend, Americans are getting smarter about how they spend that money. Brick and mortar stores suffered about a billion-dollar decrease in sales from 2014. Instead, consumers pushed online purchases to a record high.
In addition to this, sales numbers indicate earlier spending, more diversified spending and shopping carts that were more full at fewer locations. All of this points to people purchasing items they had selected before the big sales, then spending less time browsing and far less time in the harsh winter conditions.
Yes, we’re getting smarter about how we spend on the holidays. But let’s set up a plan today to be in an even better position at the beginning of the next holiday shopping season.
Step One: How much did you spend this year?
Consider how much you’ve spent this year. You can use your receipts, or you can estimate what you bought or just use the $900 per person national average.
Next, add to that how much you’ll spend in interest on credit cards while you pay off the balances. If you’d like to avoid the math, you can estimate that the total cost is $1,000, because that’s a nice round number for this exercise. (If you’d like to be more exact, use our loan calculatorr)
Step Two: Putting away that money for next year.
To use this money as intelligently as possible, it’s a good idea to save as much as possible ahead of time. That way, compound interest is in your favor instead of working against you. Start with one of our savings plans. A great option is our Savers’ Club, which you can find here, which offers good interest along with easy automatic deposits.
Step Three: Paying off this Christmas.
It’s time to get those credit card payments down so we can move into the new year with a clean ledger. If you’ve got the extra income, pay them down with that, but we also know times are a little tighter for many of us. Luckily, we have a variety of solutions for paying down credit card debt:
- Home equity loans are great for high balances, because they turn high interest credit card debt into low interest home equity debt. A home equity loan reduces the interest you pay, so you can pay off your loan more quickly. Details can be found here.
- If you don’t want a home equity loan, your credit card debt isn’t that high, or you don’t own a home, you could also consider one of our fantastic VISA credit card offerings. We offer great rates, so you can transfer your higher interest balances onto a lower interest card, which will let you pay off the debt more quickly.
Step Four: What will you do with your money?
After you’ve paid off holiday 2015, and by the time holiday 2016 rolls around, you’ll have saved more money than you need since you saved enough for this year. Interest has worked in your favor, and suddenly your next December is one in which your pockets will be full. That gives you 11 months to decide what to do with your money. Build up an emergency fund. Save for your next vacation. Get your car maintenance done on time. You have choices!
Sources:
http://www.statista.com/statistics/319562/us-consumer-spending-by-seasonal-event/