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Build Wealth Not Debt
Become an American Saver
Who is an American Saver?
Anyone who agrees to work toward a savings goal such as homeownership, school tuition, retirement, or even debt repayment. American Savers set a monthly savings goal of as little as $10, then try to save this amount each month.
How do I become an American Saver?
Complete the "I Want to be an American Saver" form and send it to America Saves, by mail at P.O. Box 12099, Washington, DC 20005-0999, or by fax at (202) 797-9093. Visit our website at www.AmericaSaves.org.
Achieve Your Financial Goals and Peace of Mind
What membership benefits are available to me at no cost?
So what does all this cost me?
No money. Your only obligation is to develop a specific savings goal, select an account, make a deposit in this account each month (or make a debt payment), and let us know that you are working toward your savings goal.
Who controls my savings account?
You do. You open the account in your name. We only advise and encourage.
Who is sponsoring this program?
America Saves is managed by the non-profit Consumer Federation of America and advised by nearly 50 national non-profit, government, and business groups. Local savings campaign involve hundreds of consumer and community groups, churches, social service organizations, employers, unions, financial service providers, and government agencies.
How are program expense being paid?
Through grants from national and local foundations. This brochure was made possible by a grant from the Bank of America Foundation.
Easy Ways to Save and Build Wealth
5 Key Savings Strategies
1. Pay off high-cost debt. The best investment most borrowers can make is to pay off consumer debt with double-digit interest rates. For example, if you have a $3,000 credit card balance at 19.8%, and you pay the required minimum balance of 2% of the balance or $15, whichever is greater, it will take 39 years to pay off the loan. And you will pay more than $10,000 in interest charges.
2. Buy a home and pay off the mortgage before you retire. The largest asset of most middle-income families is their home equity. Once these families have made their last mortgage payment, they have far lower housing expenses. They also have an asset that can be borrowed on in emergencies or converted into cash through sale of the home.
3. Participate in a work-related retirement program. Many employees turn down free money from their employer by not signing up for a work-related retirement program such as a 401(k) plan. If they did participate, with a dollar-for-dollar match they would likely receive an annual yield of greater than 100% on their investment.
4. Outside of work, save monthly through an automatic transfer from checking to savings. These savings will provide funds for emergencies, home purchase, school tuition, or even retirement. Almost all banking institutions will, on request, automatically transfer funds monthly from your checking account to a savings account, U.S. Savings Bond, or stock mutual fund. What you don't see, you will probably not miss.
5. Earn over 4% on some certificates of deposit (CDs) and on U.S. Savings Bonds. Some CDs from a bank or credit union, and Series EE and Series I Savings Bonds, currently pay between 4% and 5%. A savings deposit earning 5% will double in size in less than 15 years.
Finding Money to Save
Tip Monthly Saving
Save
$.50 a day in loose change $15
Cut
soda/pop consumption by 1 liter a week $ 6
At work,
substitute 1 coffee for 1 cappuccino $40
Bring lunch to work (saving estimated $3/day $60
Eat out
2 fewer times a month $30
Buy grocery store brands $10
Eliminate premium cable channels $20
Use fewer phone features $10
Borrow, rather than buying, one book a month $15
Comparison shop for gas (save est. $.25/gallon) $4
Maintain
checking account minimum to avoid fees $7
Pay
credit card bill on time to avoid late fee $25
Watch Your Savings Grow
Few people get rich from their wages alone. But by taking advantage of the "miracle" of compound interest - earning interest on your interest - almost anyone can reach long-term financial goals.
For example, after 40 years, $50 a month yields $40,000 in principal and another $59,575 in interest.
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