M and T Bank is offering some advice on how to start building a financial nest egg.
The regional bank is participating in the national America Saves Week initiative.
M and T suggests you begin by focusing on why you’re saving, and not just on a target amount.
Then develop a plan that involves trimming unnecessary spending from your budget.
The bank says any extra money, such as bonuses, raises or tax refunds, is a prime opportunity to save.
And consider scheduling automatic transfers from your checking account to your savings account, which can be done weekly, bi-weekly or monthly.
Commercial Branch Manager Mary Jacyna says you should treat your savings like another monthly bill and pay yourself first. “When you get paid, you can have a portion of that paycheck that goes right into your checking account, automatically go right into your savings account. And you can just start building it up and that’s going to be your foundation.”
Jacyna says once you’ve amassed some savings, you can invest it in something that generates a better return like a CD or mutual fund.
M and T says only 40% of Americans feel they’re on track with their retirement savings and 25% haven’t even started.