Here at Washington Trust Bank, we like to ask: “What’s Your Awesome?” It’s our way of saying whatever goals you have — we can help you get there.
Establishing healthy money habits builds a strong financial foundation for your future — and anytime is a good time to start. By budgeting, saving, and investing wisely, you can avoid unnecessary debt, manage unexpected expenses, and more importantly, work toward your long-term goals, like buying a home or retiring comfortably. Good financial planning also means you have more freedom to make choices that align with your goals.
As a proud participating partner of #AmericaSavesWeek, here are some simple steps and habits to help you be more financially awesome.
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Save automatically.
The easiest way to build savings over time is to automate the process. Every time you earn or are gifted money, get in the good habit of setting some of it aside. When you’re earning consistent paychecks, use tools like direct deposit to put part of your paycheck straight into your savings account. Don’t forget to take advantage of workplace resources too, like retirement plans where money is saved pre-tax, before you even have a chance to spend it. Plus, if your employer offers a match, that can significantly boost your savings too. Once you are set up, savings become effortless and run on autopilot. Be sure to revisit your savings plan annually, or more often if needed, to make sure you’re on track.
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Save for the unexpected.
Someday you might meet the unexpected. It could be car trouble, a home appliance that needs replacement, or a friend who decides to get married overseas and you really want to be there. Too often the unexpected can lead to relying on alternative payment methods or family members, which can add debt and financial stress. The better solution is to save for the unexpected by reserving three to six months of expenses as an emergency fund. If you are just getting started on an emergency fund, start small, saving as little as $5 per week will add up over time. Ask yourself what expenses you can comfortably remove in your daily routine? For example, skipping a coffee or making your lunch instead of grabbing take out are small ways to begin to save.
Additionally, to help your savings grow, keeping these funds in an interest-bearing account will allow for more growth over time. Use our Compound Interest Calculator to see how interest can really impact your savings.
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Save for major milestones.
Major milestones like a buying your first home, going off to college, or taking a special vacation each come with a financial requirement that needs extra planning. It's important to know exactly how much you need to save up, and tools like our Mortgage Qualifier and College Savings calculators can help.
Once you have a clear target, review your budget and current savings rates to find places where you can cut back or reallocate funds to help meet your milestone goal.
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Save by paying down debt.
By paying down, and eventually paying off debt, you can reduce the amount of total interest the debt will cost you, which frees up even more money becomes to put toward your savings goals. If you’re overwhelmed with where to start, pay off small balances first to build momentum. Then consider paying off balances with the highest interest rates to reduce the amount paid in interest over time. Another consideration is looking into consolidating debt to possibly lower interest rates or the monthly payment over time. Our Personal Debt Consolidation Calculator can help determine whether debt consolidation is the right approach for you.
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Save at any age.
When you’re just starting out, saving a few dollars from your allowance or earnings from part-time jobs can help build a good financial foundation. With your first steady paycheck, you have a valuable opportunity to build healthy money habits by setting aside part of your income regularly. As you grow in your career, workplace resources can help guide your retirement savings and offer opportunities to improve your overall savings. Good financial habits are important at any age, and it’s never too early or late to save for your future. Use our Savings Goal Calculator to help plan and reach your next goal.
We’re here to help you be financially awesome.
While you can’t control everything, you can control how you save and how you plan, which will make navigating any financial challenges a little bit easier. And we are here to help you! Our local bankers are happy to answer your questions and offer advice, tools, and resources to help you reach your goals.
Connect with your local branch and start your savings journey today! Visit our locations page to find the location nearest you.