Tips for Smart Saving: Your Key to Success

We all have goals in life, and there are typically two ways of paying for them. Either you can pull out a credit card and borrow the money. Or, you can use the money you have saved. The former provides immediate gratification but entails paying more in the long run. The latter requires planning but will save you the financial and emotional burdens of unpaid debt.

Indeed, saving is your key to success. But if you’re like many of us, you don’t save enough…often because you don’t know how or where to start. If that’s the case, read on! Tips for becoming an avid saver await you.

Do It Now

Even without a specific goal, saving immediately will give you a proverbial dopamine hit. Got debt? No worries. Start now by putting a little aside anyway. “Getting in the habit of saving is critical,” says Daniel Johnson, NASA Federal VP of Retail Services. “By setting a little aside each month, even if you’re paying down debt at the same time, you will eventually become debt free while also establishing a lifetime saving habit and the beginnings of a nest egg.”

Set A Goal

Setting a goal is the first step you’ll need to take toward achieving it, and all achievable goals share the same five factors. “By and large, setting a goal you can actually achieve means being SMART,” says Johnson.

Specific—Break down your goals into the smallest details.

Measurable—Determine the exact amount you need to save.

Actionable—Turn the details into action items on a check list.

Realistic—Make sure you can really achieve your goal.

Time-bound—Define what your time frame is for the goal.

Choose the Right Savings Vehicle

How much you have, your time frame, and your personal risk tolerance will determine the best place for your money. “And whatever those may be,” says Johnson, “NASA Federal can help.” A few options to consider include the following:

Savings Accounts are a great place to start. Dividends and risk are low, access to cash is instant, and the minimum deposit amount required to open them is small. Johnson adds, “And if you open a savings account with NASA Federal, there also are no monthly fees.”

Money Market Accounts typically pay better dividends but also require higher minimum balances. “With a NASA Federal Money Market Account, you will get instant access to your cash while also earning rates up to 3x higher than the national average,” states Johnson.

Share Certificates/Certificates of Deposit (CDs) generally represent a three-month to seven-year investment commitment that requires a larger initial deposit and incurs penalties for early withdrawal. “The upside is that they offer higher and fixed interest rates, which definitely make it worth your while,” says Johnson. “For example, with our 9-, 15- and 49-month certificates, you can actually earn up to 4.5x higher than the national average.”

Bump Rate Certificates are options that allow you to lock in today’s rate and have the ability to increase the rate one time during the term if rates increase. “This is especially important in a rising rate environment like the one we’re currently in,” explains Johnson.

IRA Certificates are specifically for people looking to grow retirement savings. “If you're looking for something more stable than the stock market,” says Johnson, “IRA Certificates provide predictable returns that will keep your retirement funds growing in a tax advantageous manner.” 

Premier Preferred Checking is a transaction account that also earns dividends on balances so that even your spending money is always working for you. “Plus, NASA Federal also gives you perks like getting your paycheck up to two days earlier as well as nationwide access to a network of 30,000 fee-free ATMs and 5,600 shared branches,” explains Johnson. 

Non-Bank Investments—For mid- to long-term goals, you may opt for non-bank investment vehicles rather than savings products. “After you’ve saved enough in one of the aforementioned accounts, you can always transfer your money to mutual funds, bonds, or individual stocks,” states Johnson. “And a licensed CFS* Financial Advisor at NASA Federal Credit Union who understands it all can help you implement a plan that makes the most of your money.”

Automation Is Key

To make your savings happen effortlessly, an automated savings plan is often integral to success. With NASA Federal, you can either have a portion of your paycheck directly deposited into your savings account, or you can set up an automatic, monthly, or biweekly transfer from your checking account to your savings account. “If you choose the second option, it is best to schedule this to coincide with your payday,” says Johnson. “By automating your savings in this manner, meeting your savings goals will become almost seamless.”

You Can Do It, We Can Help

If it all sounds too complicated, rest assured, it’s not! Says Johnson, “With careful planning, you’ll be able to save for your goals and get what you want. And the pros at NASA Federal are here to help you every step of the way.”

To get started, simply visit nasafcu.com/waystosave today to find the savings account that best suits your needs. Or call 1-888-NASA-FCU to speak with a Member Service Associate who will be happy to assist you.