Mica Gives Advice on Saving
WASHINGTON -- With "America Saves" week, Feb. 24-March 2, coming to a close, CUNA President/CEO Dan Mica listed some of the best ways for Americans to build their savings.
"The daily reports of people falling behind on credit card payments and mortgages should drive home the point that people need to have savings, rainy day funds, backup," said Mica. "One of the advantages of having money transferred automatically into a savings account is that you never miss it."
Mica furthered explained that savings can benefit greatly from compound interest, observing that "just $50 a month, invested at a yield of 5%, will turn into more than $76,000 over 40 years."
Mica also suggested that money put into a savings increase with a raise and that anytime extra money is received, in the form of a tax refund or a rebate, a certain amount should go into savings as well.