By following some basic guidelines, you’re more likely to achieve financial security.

Pay yourself first.
Sign up for an auto transfer plan at Kitsap Credit Union. We will automatically transfer a pre established amount from your checking account into one of several types of interest bearing savings accounts each month. You can view that amount as a regular “expense” and may not even notice it is gone from your checking account.

Save 10% of your paycheck.
The general rule of thumb is to save about 10% of each paycheck. If that seems too high, try 5% and work your way up to saving 10% of your earnings. Add 1% every year you get a raise until you reach 10%.

Know yourself.
Examine your goals to determine which savings plan will work best for you. For example, don’t invest all your money in an aggressive stock or mutual fund if you’re conservative with your money. If you’re saving for retirement, select a plan that will fit your financial needs down the road.

Realize that age matters.
Always take into consideration how much time you have to save for your goal. If you are a recent college graduate, you have several decades to ride out the highs and lows of the market and can take advantage of more high-risk investments. If you’re only a few years from retirement, you might not have the time cushion to afford to be too aggressive.

See the benefit of compound interest.
The simplest way you can invest your money is to leave it alone and let it “compound” over time. You earn interest not only on what you save, but also on the dividends generated. The earlier and more you save, the more your money will grow.
Use dollar-cost averaging.

This is the process of routinely investing a set amount of money over time, rather than all in one lump sum. It’s a convenient savings method, particularly for beginning investors. For example, each month transfer $25 or $50 from your Kitsap Credit Union share draft account directly into an investment vehicle such as a traditional IRA.

Use the Rule of 72.
To figure out how long it will take for your investment to double with compound interest, use this rule: Divide 72 by the interest rate you expect to receive on an investment. For example, if your investment earns 4% interest, your money will double in 18 years (72 divided by 4 is 18).

Saving money is usually a case of self-discipline. It may be hard, but having a savings cushion can provide financial peace of mind and a source of funds if you need them.

Visit a Kitsap Credit Union Financial Services Representative at one of our branch offices or call our Member Information Line at (360) 662-2000 or (800) 422-5852 for assistance in establishing a savings plan just for you.