Sunday, February 3, 2013

Start saving in February

Even if you have a small paycheck and big bills, you can make a start on saving.
 
America Saves Week is Feb. 25-March 2, but University of Missouri Extension and partner organizations are using the entire month of February to encourage individuals to set a goal and make a plan to save.
 
Throughout the month there will be events around the state to promote good saving behavior and help people review their own saving habits, says Brenda Procter, MU Extension personal financial planning specialist.
 
“Little things we buy can add up fast,” Procter said. “Tracking every penny you spend for a couple of weeks can surprise you. Can you change one small habit and find $2 a day to put aside? If so, you can save $730 in a year.”
 
Missouri Saves is part of America Saves, a yearly national campaign involving more than 1,000 non-profit, government and corporate groups to help Americans save money, reduce debt and build wealth.
 
Missouri Saves invites individuals to sign up to be a Missouri Saver at www.missourifamilies.org/mosaves.
 
“Saving takes a commitment,” she said. “If you sign up to be a Missouri Saver, we’ll send you a small tool to help you find money to keep your saving commitment.”
 
According to annual surveys commissioned by America Saves, fewer U.S. households report they have adequate emergency savings, save enough for retirement, and spend less than their income and save the difference.
 
Just thinking about saving can be daunting if bills seem to pile up faster than your bank balance, but saving money and reducing debt may be easier than you think.
 
America Saves breaks it into three simple steps: “Set a goal. Make a plan. Save automatically.”
 
Set a goal. Visualizing a concrete savings goal—whether it’s paying off a credit card, making a down payment on a home or building a nest egg for retirement—can make it easier to stay motivated and avoid the temptation to tap savings to buy things you don’t need.
 
Make a plan. Once you have a goal in mind, you’ll need a plan for how you are going to reach that goal. Keeping track of your spending and making a budget will let you know where your money is going each month. That will help cut down on unneeded expenses so you can save the difference.
 
“Small changes really can make more difference than you think,” Procter said.
 
For example, if your workday routine includes buying a $1.25 soda from the vending machine, kicking that habit would save you more than $300 per year. Going out for lunch each day might set you back $1,500 or more each year. Bringing your lunch to work instead will help you bulk up your savings and, as an added bonus, maybe even trim your waistline.
 
Save automatically. It can be hard to regularly put aside money for savings. But once you have a savings plan in place, there are ways you can make saving automatic. For example, many banks and employers provide opportunities to automatically put part of your paycheck into a savings account, retirement plan or a college fund for your children.
 
“For most people, saving automatically is the easiest way to put money aside,” Procter said. “You don’t have to remember to move money to savings. You set up your own savings habit that takes care of itself by authorizing a deduction from your paycheck or bank account.”
 
For more information, go to www.missourifamilies.org/mosaves, where you can find a variety of resources, including articles, publications, videos, and online tools for budgeting and financial planning. There is also a clickable map to find an extension family financial education specialist in your area. Contact your local MU Extension center to learn about educational opportunities.
 

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