Are you planning a vacation?
Will you need to buy a car soon?
Do you want to send your kids to college?
How soon can you retire?
While we all know it’s important to set aside a portion of our money for savings, how we separate that money can determine how quickly we achieve individual goals. An important first step is to set up individual savings accounts. Enter CNB’s new Goal-Based Savings Account. This simple savings account allows you to name it according to what goal you’re saving for and set a goal amount.
According to Bankrate.com, the more specific you set your goal the more likely you are to achieve it. “Whether it’s a vacation, a college education for your kids, a down payment on a house or retirement, decide what you’re working toward rather than choosing a nebulous number, or a vague idea of ‘saving more’.” Once you have a specific amount for each goal, set a timeline. “Some goals, like buying a car next year, might be shorter term. Other goals, like reaching your retirement number, might take longer and require more ongoing planning.” The key is to have a deadline in order to know how much you need to set aside each month and to give you a feeling for how close you are to completing that goal. Setting up separate accounts for each goal allows you to set different timelines and divide your resources accordingly.
It’s also recommended you automate your savings to make it even easier. “Rather than trying to remember to set aside money for a goal, consider setting up automatic transfers and deductions. You can create automatic transfers from a checking account to a savings account to occur on the same day each week or month, creating a situation where you don’t have to remember to make the move and take a separate action.”
CNB’s Goal-Based Savings can be set up with your CNB checking account to receive automatic transfers or you can even direct deposit a portion of your pay into the account. Once you reach your goal, it’s important to celebrate your success! Enjoy your feeling of accomplishment as you use the money for the stated goal and then be sure to call or stop into your local office to change the title of your account and set a new financial goal!
Apply for a Goal-Based Savings at any CNB office! Track your goals online using this calculator.