America Saves Week 2013: February 25 to March 3

America Saves Week 2013 is from February 25 to March 2 and is designed for individuals to assess their savings and for organizations to promote savings. America Saves Week was started in 2007 and is coordinated by America Saves and the American Savings Education Council.

Each year thousands of organizations participate, reaching millions of people about saving and building wealth. As an individual, you can sign up and pledge to save and join over 310,000 people to have already pledged to save. Doing so will not only help you build wealth but also help you avoid use of credit cards or other high interest loans if an emergency arises.




In addition to providing a pledge form, Americasavesweek.org also has other useful information and tools to help you save money. According to America Saves Week, if you're a male and you want to retire at age 65 without any source of income other than your savings and want $50,000 a year in income for life, you would have to save $620,000. Females (who live longer than males on average) would have to save $665,000 to have an average income of $50,000 a year for life.

The organization also states (and we agree wholeheartedly) that the most effective way to save is by having a percentage of your income automatically deposited into a savings account or retirement account. You probably already have direct deposit set up and have your paycheck deposited into a checking account, less what you contribute to your 401(k).

All you have to do is set up another account, preferably a savings account, and place a percentage of your paycheck into that account. If you save $200 a month over 30 years and the account savings rate is at 5.00 percent on average you'll have $170,000 in the account.

Granted, these days the highest savings rates are at 1.00 percent but the future direction of savings rates will be higher in the coming years. You can make up the difference for currently low savings rates by placing more than $200 a month into an account. Over time, compound interest is the easiest way to make money, your money makes money for you.

Americasavesweek.org also has a series of videos you can watch to help you learn about saving. The video below is rather campy but you get the idea about saving to make purchases instead of using a credit card.

 
Author: Lisa Graham
February 12th, 2013
Posted in: Savings Accounts