Savings Strategies

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• Pay of high-cost debt. The best investment most borrowers can make is to pay off FACS debt with double digit interest rates. For example, if you have a $3,000 credit card balance at 19.8% interest, and you pay the minimum amount each month, it will cost more than $10,000 in interest charges.
  
• Buy a home and pay off the mortgage before you retire. Once you've made the last payment on your home, your housing expenses are lowered. You have an asset that can be borrowed on in emergencies or converted into cash through sale of the home.
  
• Participate in a work-related retirement program. Many employers offer programs such as a 401(K) plan. If you participate with a dollar-for-dollar match, you would likely receive an annual yield of greater than 100% on your investment.
  
• Outside of work, save monthly through an automatic transfer from checking to savings. These savings will provide funds for emergencies, home purchase, school tuition, or even retirement. What you don't see, you will probably not miss.
  
• Earn at least 4% on some certificates of deposit (CDs) and U.S Savings Bonds. Some CDs from a bank or credit union, and U.S Savings Bonds pay a Yield of at least 4%. Both the CDs and bonds are insured or guaranteed by the federal government.