Building up your savings account now at Estacado will prevent you from facing financial instability later in life. But how much is enough? While several factors influence this number, including the kind of lifestyle you plan to have after retirement, the guide below looks at the general goals you should aim for.
What Should Your Savings Account Look Like?
The median income for a household in America is $56,615. According to general wisdom, you should have the equivalent of what you make per year in savings by the time you turn 30. By the time you reach 40, that number is expected to triple—in this example, that would mean having $169,845 between yourself and a partner. Those close to 50 should hope to have five times the savings they had at 30. It is never too late to start saving for your future.
Additionally, over the course of those decades, it’s likely you’ll run into some issue that requires substantial funds—whether that is a car that breaks down unexpectedly and needs to be replaced or emergency medical costs. Those with kids are even more likely to be faced with these expenses, as you might want to set some money aside in your credit union account for their wedding or college education.
What Can Be Done
In spite of how clean-cut this looks on paper, it is a real struggle for most Americans to come near these goals. On average, most families only have $8,863 in their credit union. But rather than give up on saving as an impossibility, there are ways to fund your nest egg.
For starters, due to the value of compound interest, money saved at an early age has the ability to substantially increase on its own. For example, Estacado’s Traditional and Roth IRAs earn great interest, allow annual contribution to be added; allowing that money to make potentially thousands of dollars. Therefore, whatever you can save when you are younger will be worth your while. Additionally, investing in insurance, such as for your health, house, or car through our business partners TruStage (www.trustage.com) can help cover those unexpected life expenses, thereby reducing your need to keep a substantial emergency fund.
Want to start preparing for the future? Turn to the team at Estacado Federal Credit Union in Hobbs, NM. With six decades of experience under their belt, they can help you find the right retirement savings account to grow your finances. In addition, they also offer auto, life, and health insurance to protect your family against the unknown. Review these and other services online. For questions on how to get started, call (575) 393-1596 or visit our offices in Hobbs, Lovington and Denver City. Estacado Federal Credit Union, Where you are more than a number, you’re a Member!