Be Savvy When Saving Money 

by Kaitlyn Mouton 

The idea of saving money may seem foreign in a time of rising prices, but according to Katelynn Vaughn, AVP, Lake Charles Banking Center Manager at Red River Bank, having a savings account is important, and with a little savviness, building one can be an achievable goal. 

“Even a small savings account can be beneficial in an emergency. The recommended amount for savings is 3-6 months’ worth of expenses for non-self-employed people and 6-9 months’ worth for people who are self-employed or work in an industry with high volatility. Funds should be easily accessible and in a high-yield account to optimize interest earnings.”  

With wallets pinched tight though, where can these extra dollars come from? “The first step is to account for every single dollar coming in and finding a place for it to go,” explains Vaughn. “List your high priority categories – such as housing, food, insurance, utility bills, vehicle costs, loan and credit card payments – first.” 

Vaughn says everything beyond those priority items is considered a lifestyle choice. “Once every dollar has been categorized for the high priorities, the extra can go towards lifestyle choices and savings,” adds Vaughn. “Being cognizant of what is happening with everyday spending and writing it down on paper or a spreadsheet is really a great way to see where the money is actually going.”  

According to Vaughn, subscriptions, especially those that you may not even be using, could be costing you extra money each month. “Eliminating items or services that are not being used is an easy way to find extra cash. Maximize your savings when grocery shopping by using weekly sales ads and coupons, purchasing store brands, and comparing prices between stores. These are great ways to find a little extra cash to roll into savings.” 

Also, consider leveraging your bank’s automation services. “Most online banking systems have frequency settings that allow for a set amount of money to be moved from one account to another on set dates,” explains Vaughn. “This makes saving money routine and simple,” Vaughn adds. 

If a summer vacation is on the family wish list this year, Vaughn recommends opening a separate savings account for these funds to reduce the risk of accidentally spending these funds on something else. Help maximize your vacation dollars by price matching between hotels and popular rental sites, staying a little further away from your main destination, and if your trip will be an extended one, renting a space with a kitchen to allow for some home-cooked meals. 

“If you are driving on your trip, don’t forget to leverage your loyalty program rewards,” says Vaughn. “There are a number of programs through grocery stores and other apps that allow you to save money on gas.” 

When it comes to looking for savings on mortgage interest rates and insurance rates, be sure to shop around. “Interest rates and closing fees can vary from lender to lender, so it is important to consider both when deciding on a mortgage lender,” concludes Vaughn. “The same can be said for insurance premiums.” 

While building a savings nest egg may seem like a tall task, by taking some simple steps to build in accountability, spend responsibly and seek resourceful opportunities for savings, creating that financial safety net is possible over time.