From Staff Reports
In recognition of Military Saves Week (Feb. 26 – March 3), the Tennessee Department of Commerce & Insurance (TDCI) Securities Division is encouraging military members to commit to a financial savings goal and take the Military Saves Pledge.
Military Saves Week is a nationwide campaign coordinated by America Saves and the Consumer Federation of America in partnership with the Department of Defense. The Week is an annual opportunity for organizations to promote good savings behavior and a chance for individuals to assess their own saving status.
“Military Saves Week is a great opportunity to help service members and their families enhance their financial stability,” said TDCI Assistant Commissioner for Securities Frank Borger-Gilligan. “We encourage Tennessee military members to use this week to set a savings goal, make a plan, and start saving automatically.”
The easiest and most effective way to save is to set up automatic savings. This is how millions of employees save through 401(k) and other retirement programs at work. It is also how millions of Americans save at their bank or credit union.
How to Save Automatically
- Every pay period, your employer deducts a certain amount from your paycheck and transfers it to a retirement or savings account. Ask your HR representative for more details and to set this up.
- Every month, your bank or credit union transfers a fixed amount from your checking account to a savings or investment account. Talk to your local bank or credit union to set this up.
Why Automatic Savings Works
Over time, these automatic deposits add up. $50 a month accumulates to $600 a year and $3,000 after five years, plus interest that has compounded. Soon you will be able to cover many unexpected expenses without putting them on your credit card or taking out a high cost loan.
If you can’t afford to save even $50 a month, there are alternatives. Many banks and credit unions will transfer as little as $25 monthly from checking to savings and, as an added bonus, waive any monthly savings fees.
I Don’t Have enough Money to Save
If $25 is too much, just save your loose change. If every day you just put some or all of the loose change in your pocket or purse into a jar, and don’t spend it, you will find that in a year you will probably accumulate over $100.
Just saving loose change has persuaded many Americans that they are able to save. And when they become convinced that they can save, they find other ways to build an emergency fund or save for other goals.
To help all investors with safe investing habits, the Tennessee Securities Division encourages individuals to visit its website to get free investor education materials.
About the Tennessee Department of Commerce & Insurance: TDCI protects the interests of consumers while providing fair, efficient oversight and a level field of competition for a broad array of industries and professionals doing business in Tennessee. Our divisions include the State Fire Marshal’s Office, Insurance, Securities, Consumer Affairs, Tennessee Law Enforcement Training Academy, Regulatory Boards, Tennessee Emergency Communications Board, Tennessee Corrections Institute, and TennCare Oversight.
To check a license of a professional regulated by the Department, go to http://verify.tn.gov/.