- May 27, 2023
- Posted by GE Credit Union
Break the Cycle: How to Save When There Isn’t Room in the Budget
66.1% of millennials in the Midwest report living paycheck to paycheck.1 If you fall into this group, you know that saving can sometimes feel like an unattainable luxury. How are you supposed to save what you don’t have? From smart budgeting to the best savings accounts, there are many resources available to help. If starting to save is a priority for you, the tips below can put you on the right track.
How to break free and start saving
Budget, budget, budget
First, review your transaction history to spot opportunities. Could you eat out less? Or, is there a subscription you forgot to cancel? Learn where your money is going so you know what’s reasonable for you to change.
- Tip: General Electric Credit Union (GECU) members get access to Money Management, a budgeting tool that offers a holistic and highly visual way to see where your money goes, monitor goals, and more!
If the concept of a monthly budget is intimidating, consider starting out by just budgeting your paycheck. If you’re paid bi-weekly, brainstorm any items that need to be paid over the next two weeks (e.g. a utility bill or rent). Then, think ahead to the upcoming weeks and months. Is there a large bill or expense coming up? Set aside money for it now so you don’t fall behind.
Consider saving any remaining funds or start out small by saving a percent of what’s leftover, then increasing the percentage over time. Eventually you may feel comfortable graduating to a monthly budget.
It’s difficult to know where you stand if you don’t know where you’re going. Setting goals will give you a benchmark to work toward. That way, you can better gauge if you’re on track or if you got lost along the way.
Whether you’re saving to pay off a medical bill or student loans, goals can also keep you motivated. Instead of blindly saving, decide on a specific dollar amount and watch your balance grow. Seeing yourself get closer and closer to a goal will instill you with a sense of pride.
Identify big expenses
Getting to a place where you can start saving may take some big changes, such as identifying and addressing expenses that are sucking your budget dry.
1 in 4 renters in 2018 spent more than half of their income on housing, much higher than the 30% threshold commonly sited as the rule of thumb.2 If you can relate, consider a smaller space or an option in a less popular side of town. Be sure to factor in things like moving costs to determine if it would be cost-effective to relocate.
If you own a house, consider refinancing. Doing so may allow you to lock in a better rate and a more affordable monthly payment.
Get saving with GECU
Finding the best savings account is really a matter of reviewing the options and determining which one is right for you. Here at GECU, we have a simple savings account that offers security and the convenience of Online Banking and our mobile app.3
Want to boost your savings potential? Our Thrive Money Market account is a tiered-rate option that lets you earn interest on your balance. The best part? You can open the account with as little as $100 and continue to build on your savings over time
You can put your savings on auto pilot by opening a GECU checking account and enrolling in Round-Up.4 This program rounds up your debit card purchases to the nearest dollar and deposits the extra change into your savings account. We also match 5% of your rounded-up funds a month, helping you earn up to $350 a year!5 Little by little, you’ll see the difference add up! Let us help you open the door to new savings possibilities.