This story on money saving tips is sponsored by America First Credit Union – The member-owned, not-for-profit cooperative financial institution is the largest credit union in the state of Utah.
It’s hard saving money. We’re human, we’re short sighted, and we love to spend. But that doesn’t have to kill your finances. Rex Rollo, CFO of America First Credit Union, joins Jeff Caplan of KSL Newsradio to share money saving tips will bring you the financial future you really want.
Funds With Withdrawal Penalties
Rex Rollo is the CFO of America First Credit Union, and knows how hard it can be to resist the temptation to spend, “The truth is, we don’t trust ourselves to make good decisions with our money when we have complete access to it.” Rollo believes the key is to “trick yourself” into saving money by putting funds into accounts that carry a penalty for withdrawing money. This makes us highly unlikely to spend it irresponsibly and it helps us meet our savings goals.
There are a number of great options including Certificate of Deposit (CD), IRA, and 401k. These are all widely available and because you’re leaving the money for a longer period of time, they offer much higher interest rates. For example, America First Credit Union offers a full 2% higher interest rate on a 5 year CD verses a 5 month CD.
Track Your Success
Rex also recommends taking advantage of the free tools offered by your financial institution. These tools, such as the AFCU E- Alerts and mobile app, will help you more easily track your success. But the number one piece of advice Rex gives as a financial expert is to set a budget because you need to know how much you can save.
After that, set automatic payments into your savings account. This will help you keep your budget and resist the temptation to spend irresponsibly.
Money Saving Tips
Each of these money saving tips are simple and convenient ways to “trick yourself” into saving more. Years from now as you’re laying on the beach spending the money you saved, you’ll be glad you did.