Saving Always Pays Off
11/25/2022 - SouthState Stories and Insights
You’ve heard it said countless times: “A penny saved is a penny earned.”
Whether you’re planning to buy a new car or concert tickets, saving up over time is a better way to go than using credit. Instead of paying off interest, you can use the savings to work toward the next large purchase or prepare for an unforeseen emergency.
At SouthState, we have multiple ways to help your financial planning get off the ground. Our bankers can walk you through options including savings accounts, retirement and college savings plans.
Make Saving Easy
If you’ve found that remembering to put aside money is difficult, you’re not alone.
One of the simplest and most effective tools you can use is an automatic savings plan. Check with your employer to see if they have the option to deduct a certain amount from each paycheck to automatically transfer to a savings account.
Round Up To Save™ from SouthState can help you save with just a swipe of your debit card. For each debit card purchase you make, this feature “rounds up” the amount to the next dollar and deposits that change in your savings account.
If you round up just 50 cents a day, you’ll accumulate $182.50 in a year. With interest earned on your savings account, plus SouthState’s 2% match on Round Up To Save™ transfers, up to $250, your nest egg is well on its way.
Set your savings goal and use the chart below to determine how much you will need to save each month to reach your goal. As you can see, saving just the price of a latte or lunch can grow into an emergency fund.
| Amount to Save | 6 months | 12 months | 24 months | 36 months |
|---|---|---|---|---|
| $180 | $30 | $15 | $7 | $5 |
| $280 | $48 | $24 | $12 | $8 |
| $500 | $84 | $42 | $21 | $14 |
| $2000 | $332 | $166 | $83 | $55 |
Save for the Future
While you’re saving up for a large purchase 1 to 3 years down the line, don’t forget about what’s ahead in 25 to 30 years.
There are two fundamental strategies to preparing for retirement: save early and save more.
Determining exactly how much you need to put aside for retirement can be complicated. To calculate, you need to know your level of expenses during retirement, your future tax rates, the future returns on your assets and ultimately how long you are going to live.
Make sure to review your retirement plan periodically to make sure it still matches your desired standard of living. You may need to tweak your contributions or other aspects of your plan.
