February 22-26 is America Saves Week. In the past 12 months, we have learned to expect the unexpected, and the same has likely proven true with your finances. First Horizon can help you navigate these unexpected and unprecedented times.
The America Saves pledge is a call to action for Americans to commit to saving successfully. First Horizon is proud to be one of 2,000 organizations committed to helping you save and to achieving financial stability. (Info at https://americasaves.org/)
Here are five savings tips everyone should consider:
Pay yourself first. Move money from your checking to your savings account automatically. Whether saving for education expenses, retirement or all things in between, this is one of the easiest ways to reach a goal.
Set goals. Start by thinking of things important to save for. Are you getting married? Do you plan to go back to school? Savers who have a plan are twice as likely to save successfully.
Save for the unexpected. Use the 50-20-30 budget rule to save. Typically, 50% goes to priority needs such as your mortgage or rent, car payments, utilities and groceries. Set aside 20% to savings, which can include adding money to an emergency fund, making IRA contributions to a mutual fund account, and investing in the stock market. Commit that 30% goes to your wants; the non-essentials such as entertainment and food delivery from your favorite restaurant, etc.
Prepare for retirement. Retirement will probably arrive quicker than you may possibly realize. Preparing for retirement is especially hard when you are focused on the present. It’s a fact that very few of us have a plan for retirement that is comparable to how we’re living now. So, save today for tomorrow!
Reduce your debt. This is something you don’t hear as often: paying down your debt is saving. When you actively reduce your debt, you save on interest. When you pay on time, you save on late fees and maintain a higher credit score – which will save you money long-term.
If you are feeling unsure or uneasy about your finances, consider America Saves Week as a call to action. You can take additional steps by attending workshops and by scheduling a personalized financial wellness check with First Horizon.
No matter where you bank, First Horizon is here to provide expert financial guidance and advice. You can schedule a virtual or in-person check-up at www.FirstHorizon.com/appointment and enter the banker code GB12963. Be on your way to further financial empowerment.
Dave Miller is president of First Horizon Bank’s East Tennessee region.