The 2×2 System is where you set aside two hours on the calendar two times a month to complete a predetermined financial task. This modest but consistent effort can help you sustain financial health and build wealth in bite-sized chunks. To view March’s blog covering creating a spending and savings plan and preparing to do your taxes, click here. We hope you find this month’s information on tracking spending and setting savings goals beneficial.
April Session 1: Automate your savings.
A recent study found that people who automate the process of putting money toward their goals achieved a 73% increase in savings over people who didn’t. The bottom line is that you’ll save more by automatically transferring part of your income to your goals each month. The machines always remember to make the transaction and aren’t tempted to spend the money instead of depositing it.
Tip: Signing up for Direct Deposit at the Credit Union is a quick, easy, safe way to automate your savings. And it comes with exclusive perks, including:
- Monthly Checking account rewards: Earn cash rewards just for having your paycheck directly deposited into your Credit Union Checking account.
- Online Savings account APY Bonus*: Boost your Online Savings account with a 1.00% higher APY on your savings account balance.
- Loan rate discounts**: Enjoy a special 1.00% rate discount on auto, Signature, home equity, and business loans. Making it easier and more affordable to achieve your financial goals.
April Session 2: Review your retirement plans.
Because taxes and retirement considerations are so intertwined, it’s a solid idea to do an annual review of your individual account elections and overall retirement plan once you’ve completed your filing with the IRS. A few of the questions to ask yourself:
• Am I contributing as much as I could be to retirement?
• Am I maximizing matching employer contributions?
• Does the risk tolerance of my investments still match my target retirement date?
• Does my asset allocation need rebalancing?
• Are there retirement plans from past employers I could roll over into an Individual Retirement Account (IRA) for easier management?
• Do I need to set up an appointment with a professional to review my retirement strategy?
Tip: If opening an IRA is part of your retirement planning, here’s something you may not know. We offer Traditional IRA, Roth IRA, and SEP IRAs to help you meet your long-term goals. Be sure to consult your tax advisor regarding tax consequences and your specific situation before opening any IRA. Here’s another bit of info you need to know. The deadline for making a contribution to an IRA for a given year is the tax-filing deadline date of the following year. For example, if taxes are due April 15, you have until that date to make a contribution for the previous year.
Final thoughts.
Save for today. Save for tomorrow. Automating savings now can go a long way to helping you achieve your goals, whether creating an emergency fund, saving to buy a home, or making your retirement years more fiscally sound. Speaking of retirement, reviewing your retirement plan, no matter your age, is a vital step to improving your post-work life. This isn’t a one-and-done task; review your plan annually and when there’s been a significant life event. With patience and perseverance, you can lead your best financial life today, tomorrow, and in years to come.
This article was developed in partnership with our friends at Balance Pro.
*Offer valid on Direct Deposit Payroll enrollment into a Credit Union share account. This offer may be withdrawn at any time. Only Farmers’ employees qualify for payroll deposit up to two days early. Subject to employer and/or payer terms and conditions. FIGFCU will generally post Farmers payroll direct deposits on the day they are received, which will be up to two days earlier than the scheduled posting date. Other exceptions may apply.
- Direct Deposit/Agent Net Check into a FIGFCU Checking Account (either High Yield or CashBack) and Automatic Payment/Folio Deduction to the loan is required.
- Loan and checking account with DDEP must be under Primary Membership. (Checking/DDEP can NOT be to a joint checking account under a different membership.)
**1.00% rate discount is for a minimum of $1,000 monthly Direct Deposit or Agent Net Check into a Farmers Insurance Federal Credit Union Checking Account and Automatic Payment/Folio Deduction as a repayment method to qualify. Rates are subject to change at anytime.
