By Tina Mason,
Customer Solutions Specialist,
Saving is not always easy. Just ask the 58% of Americans who have less than $1,000 saved (73% have less than $5,000 in savings). Financial experts suggest having an emergency fund of 6-12 months of expenses, in addition to saving for retirement, which should be around 15% of your annual income. Of course, that doesn’t factor in saving for additional large expenses, like vacations, college tuition, home improvement projects, among others.
So, when you put it all together, saving close to 20% of your income can help provide a comfortable level of financial security. But, according to another survey, 69% of Americans set aside 10% or less, and only 15% are saving more than 15%.
There are several reasons behind the lack of savings, including expenses being too high, income levels not being high enough, and debt – as well as simply not having gotten to it. It’s very possible that some expenses can be reduced by doing a spending analysis, which would help those with high expenses or lower incomes. But, the simple fact is it’s just not easy to save.
There’s good news, though. We’re living in a tech-driven world, and innovative companies are creating apps and services to solve just about every problem, including fintechs and the saving dilemma.
The Milford Bank has partnered with one of those fintechs, Plinqit, to help customers save. The key is that it’s simple to set up and simple to use. Customers simply set up a Plinqit account, connect it to their checking account, set up to five savings goals and a schedule for depositing small amounts into their Plinqit accounts.
Because we want to help customers succeed, The Milford Bank and Plinqit incentivize users to become more financially literate and to follow through on their savings goals. By watching educational and financial videos through the app, users can earn savings rewards that are added to their Plinqit accounts. Users can also be rewarded for successfully reaching their savings goals – but there are penalties for withdrawing their funds early.
How much users are able to save is completely up to them. Each user has to set reasonable savings goals based on their own budgets and expenses. The Milford Bank and Plinqit are here to help keep those savings goals on track. The app works; Plinqit users have saved more than half-a-million dollars since the app was launched.
If you’re serious about saving money for any reason, The Milford Bank is here to help. Anyone can set up an account on their own and start saving, but if you want advice on your personal finance needs, please visit one of our offices and speak to one of our financial specialists.