Saving Strategies

Saving Strategies to Build Financial Health

Saving isn’t just about putting money away — it’s about building confidence, creating opportunities, and protecting yourself from life’s surprises. At UMCU, we believe every member can become a better saver with the right strategies and mindset.

Why Saving Can Feel So Hard 

Inflation, rising living costs, the lure of online shopping, and the pressure to “keep up with the Joneses” can all chip away at your ability to become a consistent saver. Add in student loans, credit card debt, or the costs of raising a family, and saving might seem impossible. 

The truth? These challenges are real, but they can be overcome with planning, consistency, and a shift in mindset. 

Make Saving a Habit, Not a One-Time Event 

Many people save only when something extra comes in — like a tax refund, a gift, or a year-end bonus. While that’s a start, the real power comes when saving happens automatically and consistently.

UMCU Tip: Set up automatic transfers from your checking to savings each month, or split your direct deposit so a percentage goes directly into savings. That way, you’re paying yourself first without even thinking about it. We like to say "set it, and forget it!".

The Golden Rule: Pay Yourself First 

Treat savings like a bill you owe to your future self. Transfer money into savings before you start paying other expenses — whether that’s $20 or $200 a month. By making it a non-negotiable part of your budget, you’ll be surprised at how quickly it grows. 

Three Essential Savings Buckets

A strong savings plan covers multiple needs, not just one. We recommend focusing on these three buckets: 

1. Emergency Fund: Your safety net for life’s surprises—car repairs, medical bills, or sudden job changes. Short-term goal: $1,000 Long-term goal: 3 months of essential expenses It's also important to retain these funds in a safe and insured account, such as a dedicated sub-account in your UMCU savings. There is too much volatility in the stock market to risk losing dollars earmarked for emergencies.
2. Retirement Savings: Your future self will thank you for every dollar you put away today. Take advantage of employer retirement plans such as a 401k or 403b, and also consider setting up your own Individual Retirement Account (IRA). Time can be your ally — the power of compound interest will help you build wealth over the years as your money grows.
3. “Living Life” Fund:  Plan for the good stuff—vacations, home projects, celebrations—so you can enjoy them without going into debt. 

Try the 52-Week Savings Challenge

If you like a little competition, and stick to a plan, this one’s for you: save $1 in week one, $2 in week two, and keep going until week 52, when you save $52. By year’s end, you’ll have nearly $1,400 saved. Perfect for a vacation or a special project! 

Set Goals That Stick 

Instead of simply saying, “I want to save more,” create a S.M.A.R.T goal: 

"Starting in January, I will deposit $50 a month into my emergency fund until I reach $600 by December."

Specific, measurable, attainable, relevant, and time-based goals help you track progress and stay motivated. 

Saving vs. Investing 

Both are important, but they serve different purposes: 

• Saving keeps money safe and accessible for short-term needs. 
• Investing grows money over time for long-term goals like retirement. 

Start investing early to give compound interest more time to work in your favor. Even a few extra years can significantly boost your final balance. 

Make the Most of Retirement Accounts 

Always strive to get your full employer match - it's essentially free money. If your employer matches up to 3% contribution, make sure you contribute at least 3% - it's that important! Other tips - Increase your contribution after annual raises. Review your investment mix annually to match your age and risk tolerance. consider target date funds for a hands-off, age-adjusted approach. Finally, obtain the assistance of a trusted financial advisor if you don't feel you are on track to meet your long-term goals.

Don’t Forget Social Security

It’s not your whole retirement plan, but it’s a key piece. Set up your My Social Security account at ssa.gov to: 

1. Review your earnings history, 
2. Estimate benefits at different ages, 
3. Understand how early or delayed claiming affects your monthly amount.

Your Financial Future Starts Now 

Saving is more than just a money habit, it’s a lifestyle choice that gives you freedom and peace of mind. Start small, automate your savings, and build toward your goals step by step. 

Need help getting started? UMCU’s Financial Education team is here to guide you. Contact us today and take the first step toward your healthiest financial future.