If your goal is being financially responsible, saving
is probably already among your priorities. We've all been
hit by one of life's little surprises, and having an
emergency fund to fall back on provides a much-needed paddle
when you're up the metaphorical creek. But more than just
damage control, savings provide a much more palatable
alternative when you've got a planned expense,
In honor of America Saves Week, February
20-27, following are five simple strategies you can
follow, and if you're looking for a vehicle to
help you reach your savings goals, the Capital City Bank
Absolutely Free Savings Club account* offers competitive
interest rate, convenient automatic deposit and
distribution, low minimum balance and no maintenance fees.
1. Pay off high-cost debt
The best investment most borrowers can make is to pay
off consumer debt with double-digit interest rates. For
example, if you have a $3,000 credit card balance at 19.8%,
and you pay the required minimum balance of 2% of the balance
or $15, whichever is greater, it will take 39 years to pay
off the loan. With accumulating interest, you will pay more
than $10,000 in interest charges.
2. Save for emergencies
Having an emergency savings fund may be the most
important difference between those who manage to stay afloat
and those who are sinking financially.
3. Participate in a work-related retirement
Many employees turn down free money from their employer
by not signing up for a work-related retirement program such
as a 401(k) plan. If they did participate, with a
dollar-for-dollar match they would likely receive an annual
yield of greater than 100% on their investment.
4. Outside of work, save monthly through an automatic
transfer from checking to savings
These savings will provide funds for emergencies, home
purchase, school tuition, or even retirement. Almost all
banking institutions will, on request, automatically transfer
funds monthly from your checking account to a savings
account, U.S. Savings Bond, or stock mutual fund. What you
don't see, you will probably not miss.
5. Buy a home and pay off the mortgage before you
The largest asset of most middle-income families is
their home equity. Once these families have made their last
mortgage payment, they have far lower housing expenses. They
also have an asset that can be borrowed on in emergencies or
converted into cash through sale of the home.
Tips from www.americasaves.org. *Absolutely Free
Savings Clubaccounts are only available to clients who have,
or agree to open, a Capital City Bank personal checking
account. Interest is compounded daily and paid annually
on the last business day of October. The balance of
funds in yourAbsolutely Free Savings Clubaccount will be
disbured on the first business day of November of each year
by check or by transfer to your Capital City Bank
checking or savings account. Accrued interest forfeited and
account will be closed if funds are withdrawn prior to the
distribution date of the first business day of November
each year. Fees may reduce earnings.