In a recent article, Spendthrift Nation, a new report from the Commerce Department showed that the personal savings rate of Americans fell to zero in June 2005. ZERO – as in nothing, nada!!! Needless to say, the report is causing alarm throughout the financial world, including many consumer groups.
We all agree that consumerism is running rampant in this country; anything and everything we could ever want is available to us very easily (interest free for 90 days, with just 3 easy payments if you act NOW!). But we also have so many convenient vehicles available to encourage savings. For example, here at Cal National Bank, we have a matching 401(k) plan. You can put up to 6% of your salary into the program and we will match it at the 50% level (effectively, up to 3% of your salary in FREE money every year). So while you’re saving, we’re helping add to your nest egg. And with the money coming out of your check pre-tax, you’ll hardly miss it. Since you’re not paying taxes on it, your net paycheck will look very much the same as if you weren’t saving at all.
In addition, the bank offers many different products to help you save – from checking and savings accounts to IRAs to Certificates of Deposits (CDs) and more. As an employee, you even have access to reduced rates on Home Equity Lines of Credit and Mortgage loans. In addition, we’ll give you a bit extra on our regular CD rates, too.
In my own financial life, I’ve found that if I can’t touch it, I won’t spend it! In other words, I structure my savings to be automatic – I contribute to our matching 401(k), I utilize payroll deductions for Healthcare and Dependent Daycare expenses and I also utilize automatic withdrawals from my checking account for college savings for my child. Since I don’t have to think about it, my savings grows all by itself, without me interfering my spending it all!
Just a thought – don’t put your entire nest egg into one basket. As an employee, utilize the programs we have available for you. As a customer, pop into one of our conveniently located branches and talk to someone about ways that you can boost your savings. Even if you save only 5 % of your savings, it’s still better than zero. We’re here to help!
Linda Filep is the Recruiting Supervisor at Cal National Bank.
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