Saving Strategies
W
ith the holidays approaching and the COVID-19 crisis still not behind us, saving money is more important than ever. With this in mind, here are some strategies for saving money that might be of help to you and your family:
Read the fine print when you make a purchase.
MONEY MATTERS
up all year, little by little, for the holidays. Your banker can advise you on any special programs they have and answer questions about your savings goals.
Take advantage of the current low interest rates.
With rates at almost historic lows, it might be time to consider refinancing your home. Talk to your banker to see if this is a good option for you, but generally, if you can shave at least one percent off your interest rate, it might be worth it, even if you just bought your home recently.
Say you’re looking to make a significant purchase, like a refrigerator or a computer. Maybe the store offers something that seems like a deal, like six months of no-interest financing. If you’re positive you can pay it Consider moving money from Connie Preston off within the timeframe, that could be a CDs to Money Markets. great option. But if you get to the end of the For most people, with rates this low, it makes more six months and you still have a balance, some of those sense to consider Money Market savings accounts instead companies tag on the interest effective from your date of of certificates of deposit. Money Markets don’t have a purchase, so you haven’t saved anything. specified term, so they allow more flexibility if you should Shop around. need to pull money out or if you should want to put it Be diligent in knowing the prices of goods and services, into a CD if rates change. and be aggressive in shopping around for the best deals. Keep an eye on your credit. This includes your homeowners insurance, automobile Credit cards are not bad, but if you only make the insurance and cable provider. A good rule of thumb is to check into whether you can save money for those services minimum monthly payment, you’re never going to get out from under the debt. Always pay as much as you can. once a year. For example, call your insurance agent and And make sure you check your credit reports periodically. just ask: “Am I in the best plan for my current needs We see folks shopping for a new car, and they find out for my home and my car?” See if there’s a way you can at the dealership that their credit score is much lower either lower your premium or increase your coverage, than they expected, due to fraud or identity theft. Stay depending on what’s most important to you. up to date with your credit, because it’s easier to prevent Pay yourself first. problems than to fix them after the fact. Make sure your entire paycheck doesn’t immediately land in your checking account, if you can help it. Using ~ Connie Preston has been the market manager at the direct deposit, send as much as you can to your 401K, Auburn Branch of Valley Bank since 2012, and she’s been especially if your employer matches those contributions. in banking for 35 years. An Auburn graduate, she lives in And use direct deposit to build up your savings. A regular Opelika, where she was born and raised. Valley National savings account is still the most popular way to save, and Bank is a Member FDIC and Equal Opportunity Lender. customers at Valley Bank are also opening kids’ savings accounts and holiday accounts, which allow you to save Lake Martin Living 29
