Have you ever wondered where your money goes - why you just can’t seem to put away much in savings? Or maybe you’ve been saving faithfully, but are concerned you’re not getting the kind of return you want.

We hope the information in this article will be helpful, whether you’re just starting out or are a seasoned saver.

Experts agree that the keys to successful saving are consistency and discipline.

Unfortunately, many of us decide to add to our savings with “whatever is left over” at the end of the month. It’s important to make consistent contributions to savings, either through payroll deduction or by setting a solid savings goal for each month.

Remember that time can be a powerful ally in helping you reach your savings goals. The earlier you start, the more you will be able to take advantage of compounding interest.

You may also want to identify specific ways to free up money for savings. Something as simple as setting aside your pocket change each day can add up at the end of the month. Examine where your money goes each month. Do you eat out several times a month, often go to movies, or find you spend quite a bit for other recreational activities? Consider cutting back a bit and investing that money in savings.

Once you have identified how much money you can invest in savings, you need to consider how to invest it. There are two main types of savings methods: insured savings and uninsured savings.

Insured savings includes traditional savings accounts, certificate accounts and Individual Retirement Accounts (IRAs). Advantages of these accounts include the ability to predict the return on your savings and the fact that you are guaranteed to receive both your principal and interest.

Uninsured savings methods include mutual funds, annuities, stock, bonds and other securities. These have the advantage of potentially providing a better return on your savings investment than with insured savings methods. However, you have no guarantee concerning the return on your investment.

What’s the best type of savings strategy for you? Well, savings strategies that may be appropriate for people in their early 30’s probably aren’t as valuable for people in their early 60’s. For example, persons in their early 30’s will likely want to have some insured savings, but will also want to consider more aggressive uninsured savings methods such as mutual funds, tax-deferred annuities and stocks.

People nearing or in retirement will want to emphasize the safety of insured savings and the ability to access their funds. Using a combination of savings accounts and certificate accounts that mature at different times often works well for them.

Developing a savings strategy also depends on your goals and upon how much risk you are willing to accept.

If it seems there are many factors you need to take into consideration when developing a savings strategy, you’re right. Does that mean you’re going to have to take a shot in the dark and hope for the best? Not really.

There are tools you can use to determine your personal mix of savings methods, based on your stage in life, your goals, and the level of risk you are willing to accept. One such tool is an asset allocation analysis, available free of charge from Fairwinds Financial Services, a wholly owned subsidiary of FAIRWINDS Credit Union.

Asset allocation, based on research awarded the 1990 Nobel Prize in Economics, allows you to diversify your investments by taking into consideration information you provide for the analysis. The end result is a savings “portfolio” that best meets your specific needs. (If you’re interested in an asset allocation analysis, call (407) 282-6039.

Your Credit Union Can Help

As a not-for-profit, member-owned organization, it’s our mission to help you reach your financial goals. Turn to us whenever you need plain-English, no-pressure answers to your financial questions.

Your Credit Union has many savings and investment options to help you, no matter your stage of life.

Insured Savings Options

• Savings Accounts
• Certificate Accounts
• Individual Retirement Accounts

For more information about the savings options listed above, please call Member Services at (407) 277-5045 or toll-free at (800) 443-6887.

Uninsured Investment Options Available Through Fairwinds Financial Services, Inc.

• Individual Retirement Accounts
• Estate Planning
• Mutual Funds
• Tax-Deferred Annuities
• Discount Brokerage Services For Buying And Selling Stocks, Bonds And Other Publicly Traded Securities.
• Life, Health, Disability, Medigap, and Long Term Care Insurance

Fairwinds Financial Services, Inc. can be reached by calling (407) 282-6039 or click here to have a representative contact you.