Library of Congress Federal Credit Union

Looking for an easy, automated way to save more toward your financial future? Automatic savings could be the answer. Here’s why and how automatic saving can be a powerful way to overcome savings obstacles and build a nice money nest egg.

You Can Afford to Save

If you’ve ever felt like there wasn’t enough money at the end of the month to put toward savings, you’re not alone. A lot of American families feel that way. But automatic savings at the beginning of the month helps you set aside some of that income for yourself. Paying yourself first, even if it’s a small amount will add up over time.

Automatic savings of just $50/month add up to $600 a year, or $3,000 in five years. That’s real money.

These savings have two benefits:

1. Automatic savings reduces financial stress. Just knowing you have a set amount saved each month can give you some peace of mind — especially if that money is there for emergencies.
2. Automatic savings helps you reach financial goals faster. From the down payment on a house to paying off high-interest debt, those dollars are there to help you get to the next stage of your financial life.

Here are a few ways you can set up automatic savings today:

• Monthly Account Transfers: Using Online Banking, set up automatic transfers from one account to another every month. Think of it as a bill you pay to yourself.
• Split Your Direct Deposit: If your paycheck is coming to your Library of Congress Federal Credit Union account, give us a call. We’ll help you split it into different accounts, with a small portion going directly to a new savings account.
• Utilize Your Employer Retirement Plan: Whether it’s a 401(k) or 403(b), maximize the amount you can put toward retirement. That automatic savings can really add up over time.

Stories from the Stacks is Designed for You

The Stories from the Stacks blog is for everyone. From those facing financial challenges to those who simply want tips or a better understanding of their relationship with money, this is designed for anyone interested in advancing their financial life story. Let us know what topics you’d like us to explore next!