The Bottom Line
Small business is important to Central Oregon, and to Mid Oregon. Find tips and resources for business, and information about Mid Oregon’s commercial services and business members.
Seven Ideas for a Successful Savings Plan
Saving Practices Made Easy
America Saves Week is February 26 through March 3, 2018 (Read more below). Now is the time to improve your savings game. It’s easy to postpone starting to save for a later day, but a solid plan is key to success. By following some basic guidelines, you’re more likely to achieve financial security. Here are seven ideas for a successful savings plan.
1. Pay yourself first.
Use automated transfers to get in the habit of saving. Money will be transferred from your account without you seeing it, which makes you less likely to miss it. Schedule the transfer the same date you get paid.
2. Save 10% of your paycheck.
The general rule of thumb is to save about 10% of each paycheck. If that seems too high, try 5% and work your way up to saving 10% of your earnings. Add 1% every year you get a raise until you reach 10%.
3. Know yourself.
Examine your goals to determine which savings plan will work best for you. For example, if you’re saving for retirement, select a plan that will fit your financial needs down the road. Know your financial personality, including your tolerance for risk. Don’t invest all your money in an aggressive stock or mutual fund if you’re conservative with your money and it would stress you out.
4. Realize that age matters.
Always take into consideration how much time you have to save for your goal. If you are a recent college graduate, you have several decades to ride out the highs and lows of the market and can take advantage of more high-risk investments. If you’re only a few years from retirement, less risky investments are a better option.
Math Can Be Your Friend
5. See the benefit of compound interest.
The simplest way you can invest your money is to leave it alone and let it “compound” over time. You earn interest not only on what you save, but also on the dividends (interest) generated. The earlier and more you save, the more your money will grow.
6. Use dollar-cost averaging.
This is the process of routinely investing a set amount of money over time, rather than all in one lump sum. It’s a convenient savings method, particularly for beginning investors. For example, each month transfer $25 or $50 from your share draft account directly into an investment vehicle such as a traditional or Roth IRA. You reduce your overall risk from market fluctuations because your money buys more shares when the price of a share is down, and your money buys fewer shares when the price of a share is up. Bottom line: You’ve reduced your investment risk.
7. Use the Rule of 72.
To figure out how long it will take for your investment to double with compound interest, use this rule: Divide 72 by the interest rate you expect to receive on an investment. For example, if your investment earns 4% interest, your money will double in 18 years (72 divided by 4 is 18).
Mid Oregon Savings Resources
- Mid Oregon Savings Accounts
- Save to Win: Prize Based Savings Accounts
- Savers’ Club
- Use the Mid Oregon Credit Union Savings Calculator
America Saves Week
Americans have a hard time saving money. According to a report from the Pew Charitable Trusts, the typical household cannot replace even one month of income with liquid savings.
If building an emergency savings fund is one of your goals for 2018, join thousands of others during America Saves Week–February 26 through March 3, 2018–and step up your savings.
America Saves Week is coordinated by America Saves and the American Savings Education Council to promote good savings behavior.
Are you expecting a tax refund? Make it count!
Your tax refund could help you reach your financial fitness goals.
For many of us, the New Year was a time for making resolutions—many of them financial. But it doesn’t take long to slip back into old habits and find yourself delaying saving, adding to credit-card balances, or generally fudging on your budget.
If you’re expecting a tax refund, you have a great opportunity to change the equation. That extra cash windfall doesn’t come along often, so think of some ways you can put it to work to reach your financial goals. Here are some ideas to get you started.
Retire some debt
If you’re trying to reduce your debt load, look for one debt you can eliminate altogether with your refund. Make it go away, and celebrate!
Then, use the amount you’ve been budgeting for that monthly payment and apply it to your next debt. It’s called the debt snowball (financial guru Dave Ramsey swears by it), and it’s a great way to get debt-free quickly.
Extra step: If you want to consolidate or refinance your remaining debt, check out our consolidation calculator, or apply now for a Mid Oregon debt-consolidation loan.
Get some breathing room
Are you ready to start a new monthly budget? Get off the credit card merry-go-round and use this infusion of cash to build a “cushion” into your checking account. Subtract your cushion amount from your check register or budget tracking software. Use this new amount as your working checking balance. Then, you’ll never have to rely on courtesy pay or your line of credit if you accidentally overdraw your account. Resolve to pay cash for necessities, and you’ll find your financial picture will improve dramatically!
Extra step: Register for our free “Build a Basic Budget: The Five Step Spending Plan” workshop, scheduled for February 27 at Mid Oregon’s East Bend Branch. Call 541-382-1795 or email us to reserve your seat!
Jump-start your dreams
Goals are just dreams with a deadline. Make your financial dreams closer to becoming reality by taking the first step right now! Use your tax refund as the initial deposit on your new Saver’s Club Certificate or Save to Win account. Add a small amount each month after that, and voilà—you just started your very own emergency fund, vacation account, or down payment for your first home!
Need more ideas?
One of the benefits of being a member-owned financial cooperative is that when our members do better, so do we. So we want to help you get financially fit! If you need more ideas, just give us a call at 541-382-1795, stop by your nearest branch, or browse the website.
Final 2018 Free Family Saturday at the High Desert Museum
Don’t Miss Out!
Did you miss the January Free Family Day? Want to spend a day for free at the High Desert Museum? Don’t miss the final 2018 Free Family Saturday at the High Desert Museum on Highway 97 just south of Bend. On Saturday, February 24th, the museum, a fixture in Central Oregon since 1982, will be open from 10 am to 4 pm. Anyone can take in the museum and its exhibits these days at no charge. Credit union membership is not required. In January, over 3,300 attended the first Free Family Saturday of 2018.
Surely you also know someone that would benefit from a free day in this quality educational and fun environment? Other family members? Co-workers or neighbors? Young families and others who might have a difficult time with admission fees? Would you share this opportunities with anyone and everyone you know?
High Desert Museum is Top Rated Opportunity
The High Desert Museum is consistently rated as the top Central Oregon attraction by Trip Advisor. With 135 acres and more than 100,000 square feet of exhibit space, it’s a “must see” for anyone in Central Oregon. Get a close-up view of native wildlife, such as river otters, bobcat, porcupine and badger. Talk with historic characters who share tales of early Oregon explorers and settlers. Visit an authentic homestead and sawmill from 1904. The attraction includes a Museum store and café.
Current exhibits include Dinosaurs Take Flight: The Art of Archaeopteryx, Innovation Lab: Design Inspired by Nature and the Autzen Otter Exhibit.
Museum & Mid Oregon Partnership
Mid Oregon is proud to offer this opportunity to Central Oregon residents, and is thankful for the partnership and excellence provided by the High Desert Museum staff and volunteers. Together we want to ensure thousands in Central Oregon can see the museum these days.
For more information about the museum, its exhibits and other details, visit www.highdesertmuseum.com.
Note your projected attendance and invite others through the Facebook Event Page.
Watch the Free Family Saturdays Video:
