It’s advice everyone has heard before, “It’s important to save money!” And that’s because it is. It’s important to have healthy savings, and many people don’t have enough saved up.

Ideally, you should have enough in savings to pay for three to four months of expenses at any given time, just in emergency savings. Along with having that emergency fund available, you should also be saving towards goals, like buying a home or a new car. 

So, if you feel like you aren’t saving your money, or feel behind, we have some ways to guide you on how to grow your savings.
 

Create a Passive Way to Save so You Don't Have to Worry
 

One of the hardest parts about saving money is actively putting it into the saving account. Whether you are depositing your check personally into your accounts or have direct deposit, you’re likely putting it into a checking account. Then, you have to move the money from your checking account to your savings, which might be difficult process. Whether it’s simply remembering to do it, or wanting to use that extra money for something else rather than saving it, it's not easy to regularly make that deposit.

A great way to keep your savings growing is to do it passively. Have money go into your savings account without any conscious effort on your part. There are a few different ways to do this.

One way is to set up a recurring transfer between your checking and savings accounts. Every time a paycheck hits your checking account, have a set amount transferred to your savings. For example, have $30 transferred to your savings every payday; weekly or monthly.

Another way to passively save money is with Pioneer’s ChangeForward account. How it works is that every time you use a debit card to make a purchase, Pioneer rounds it up to the next dollar. The left over change  (between your charge and the next dollar) is deposited into a savings account. This way, every time you buy something, you are passively saving some money.
 

Expect the Unexpected Expenses
 

The idea of building up savings, especially emergency savings, might be hard for some to grasp. Without a clear goal or reason, many would rather spend the money on their current needs, rather than trying to predict the future of what could go wrong.

To help with this issue, try this exercise. What is one thing, that if it broke today, could you not live or do your job without? For some, that might be their car to get to work. Others, it might be their computer they work from home with. Or to live in your home, you need things like a roof, water heater, furnace/air conditioner, or even your fridge. Pick one thing that would have a drastic impact on your life if it broke. Your new saving goal is to have enough to buy a new one of that item, or if it’s really expensive, at least a down payment on it.

Now, if you already have enough for one big potential expense, do you have enough for two? When it rains, it pours, so sometimes those big expenses can hit one after another. Maybe you get a leaky roof and a fridge that breaks and need to replace both!
 

Save for Retirement
 

You don’t want to work forever. At some point, you’ll want to retire and be able to kick back and enjoy your golden years. But everyday you don’t have an active retirement plan, the less likely this will happen. 

You need a retirement account to start contributing to. If your work offers one, utilize a 401(k). If not, open an IRA and start contributing to it. The younger you can start building your retirement fund, the better off you’ll be because the money has longer to grow. If you are looking for place to open an IRA, Pioneer can help! We have an IRA option you can open and start saving for retirement.
 

Paying off Debt Means Saving More Money

Another reason it might be hard to save money is because other things are demanding it, mainly debts. If you have debts weighing you down and stopping you from saving money, it’s time you go after them aggressively. 

Make a set plan on how to pay off some debts quickly. It might require tightening the budget, but the sooner you get these debts paid off, the better. If you have lingering credit card debts you can get rid off, consolidate that debt off the card and into a small personal loan. 

Once you get some or all of your debts paid off, you can put the money you had going towards the debts monthly into a savings account instead. This could quickly build up your savings and get you in a safe space. 

If you need help paying off your debt, Pioneer members get access to financial counseling through GreenPath Financial Wellness. The team at GreenPath can help you create a plan for your debts, help consolidate, and will even help negotiate your debts for lower interest rates or even paying less on the debt. 
 

Saving as a Family
 

Saving money doesn’t have to be a solitary task only for the parents. Whether you’re saving for a family vacation or growing your emergency fund, it’s important to involve all members of the family in the saving process. Not only does this teach your children the importance of saving money, it also helps you hold each other accountable for saving. 

Sit down as a family to discuss ways to save money, both individually and as a group. This could include not eating out, avoiding unnecessary purchases, or keeping each other honest at the store. If your children want to start saving money on their own, get them a savings account like Pioneer’s Super Star Youth Savings Account. It’s perfect for children looking to get started saving money and for parents looking to instill the importance of saving money onto their children.

Open a Super Star Youth Savings Account