If You Have a Savings Plan, Then Avoid These 3 Common Mistakes

Everyone should have a long-term financial goal, but whether it’s saving for retirement, a new home, or a new car, many sometimes find it a struggle to hold onto their savings. A few reasons for this include facing financial setbacks like a job loss, poorly managing their spending, or simply not knowing how to grow their savings at all.

Succeeding with a savings plan highly depends on your financial habits and how you handle your spending. Bad financial habits can lead to your financial dream ending quickly. Avoid dealing with the lack of a savings plan by following the advice we’ve outlined below.

Avoid Neglecting Your Savings Fund

People oftentimes begin adding funds to their savings account but end up failing to continue for a variety of reasons that include:

• Overspending on non-important items (like electronics) or events (like eating out for dinner every night) that spill over into their savings account.
• Putting together a savings plan on their own without the help of a financial advisor.
• Not setting up monthly financial goals, such as putting away at least $100.

Never Overlook Investment Opportunities

Look around for options to grow your savings fund. Some people think investing money only progresses well through options like stocks and bonds. However, as a member of our credit union in Harlingen, you can invest hassle-free with the following services:

• Individual Retirement Account (IRA) that will grow your savings until you withdraw it.
• Money Market Account which grows interest in the select amount you put in.

Don’t Dip into Your Savings Fund

A common mistake that many people make when building up their savings account is using funds for unimportant reasons such as lending money or running their checking account dry by overspending and relying on emergency funds to get by.

Instead, create an emergency fund to protect your financial goals by:

• Working with our financial officers to put together a monthly budget for your expenses.
• Cutting unnecessary expenses, such as entertainment and dining-out from your budget.

Need Help Saving for the Holidays?

Become a member of VFCU to save money during this holiday season with our Holiday Skip-A-Payment offer! Ask us about it. Be on the lookout for this offer, only available for either November or December. Contact our credit union in Harlingen for more information.