Savings: Your Key to Success

A white couple discuss their finances at their kitchen table. In front of them are cups of coffee, a notepad, a laptop, and various bills.

You have wants. You have needs. And you have two ways of paying for them – pull out the credit card or use the money you have set aside. Which would you prefer?

It’s a safe bet that most people would choose to have a stash of cash from which they could pay for everything from impulse purchases to long-term financial goals. But how do you save when there are bills to pay and the paycheck only goes so far?

Do It Now

Even without a specific goal, saving immediately will make you feel good. Have debt? Put a little aside anyway. Acquiring a savings habit as soon as possible is critical. By setting a little aside each month while aggressively paying down your obligations, you will graduate into being debt free with a happy little nest egg in place. And in the event of an emergency, you won’t have to touch the credit cards and feel like you’re driving in reverse.

Set a Goal

All achievable goals share the same five S.M.A.R.T. factors:

  • Specific – describe your goal to the smallest details
  • Measurable –  how much do you need to save?
  • Actionable – break it down into reasonable action steps
  • Realistic – could you really achieve this goal in the given time?
  • Time-bound – what is the timeframe for the goal?

Put It Somewhere

How much you have, your timeframe, and personal risk tolerance will determine the best home for your money. A few accounts you may consider are:

  • Savings account – A great starter account. Interest and risk are low and the minimum deposit is small. To make this an easy choice, Hanscom Federal Credit Union created CU Thrive, a one-year automated savings plan. You can begin with as little as $5 or as much as $500 a month, which will automatically transfer from your Hanscom FCU checking account to your CU Thrive account.
  • Money market account  This savings account pays slightly better interest but may require a higher minimum balance. (Find Hanscom FCU rates here.)
  • Money market fund  A very secure mutual fund account. Invested in high-quality, short-term investments. Higher deposit, interest and risk.
  • Certificates of deposit (CDs) Generally a three-month to seven-year investment commitment, CDs offer higher and fixed interest rates, but with a greater initial deposit and penalty for early withdrawal.

For mid- to long-term goals, you may opt for investment rather than savings vehicles. After you’ve saved enough in one of the above accounts, you can transfer your money to mutual funds, bonds, or individual stocks if you wish.

Impossible? Not at all. With careful planning, savings is the key to successfully managing your money and getting everything you want. 


Learn more here about the rates we offer on our Share Certificates. We're also offering a special rate on our 6- to 11-month certificates right now!  Drop by a branch or give our Remote Support team a call at 781-656-4328 to open your Share Certificate today!

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Hanscom Federal Credit Union
Hanscom Federal Credit Union

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