Sometimes it can feel like you need thousands of dollars to move the needle on your finances even a little bit. So if you find yourself with a few hundred dollars--say from a tax refund or an unexpected windfall--the temptation to spend it can be great. After all, how much difference can $500 make? But used wisely, even a few hundred dollars can put you on the road to a more financially secure future. Here are some ways to make limited funds count.
- Start an emergency fund. Ideally you want six months of living expenses stashed to cover unforeseen expenses, but $500 is a good start. And once you have a good start, it can spur you to keep contributing.
- Take advantage of compound growth. Before spending that money, consider putting it into your IRA (individual retirement account). Not only will compounding increase your balance over time, but increasing your pretax contributions can cut your tax bill.
- Save for a bigger-ticket expense. Whether it’s for a major house renovation or a dream vacation, put the money in a credit union savings account; whenever you have a little extra money come in, set it aside as well. You could end up with a gift the whole family will cherish for years.
- Put your money in a share certificate. Take your savings to the next level and consider taking advantage of the higher interest rates share certificates can offer. Rates can range from 6 months to 5 years and you can open a share certificate with as little as $500 with Azura. These certificates are federally insured b the National Credit Union Administration (NCUA) so you know your funds are safe and sound.
Saving with a purpose is the secret to making your goals a reality. If you want to save enough money to reach your goals but you're not sure where to start, check out our Banzai coaching session "Saving with a Purpose" to set goals, see a monthly breakdown of how to make them happen, and get a complete picture of your savings goals to make informed decisions.
Don't forget - Azura Credit Union is here to help with all your savings needs. Call us at 800-432-2470 or visit your nearest branch to set up short-term and long-term savings vehicles that fit your needs.
