We can do two things with our money: spend it or save it. (Actually, there are other possibilities — eating it! smoking it! — but we’ll limit our discussion to what sane people do.) For most people, spending is in the driver’s seat, getting the largest chunk of monthly cash flow and — let’s be honest — a lot more fun. Yet we all know that we should be saving money, and that a good deal of our spending is the financial equivalent of eating a Twinkie: It provides a short burst of pleasure, but no lasting value. In fact, it can undermine future well-being (and possibly make us fat).
Many financial planners suggest that the first step toward reaching a spending-saving détente is analyzing your spending and creating a budget. But there are few problems with traditional budgeting:
It’s difficult to monitor every specific category — e.g., utilities, food, clothing, entertainment — and make sure you’re spending just so much and no more.
It can be time-consuming and tiresome.
It focuses more on spending — and often the restraint of spending, which can feel like a straitjacket — while saving can seem like an afterthought.
I myself have found budgeting more difficult as my family has grown and my life and finances have become more complicated. So after a good deal of thought and research, the Brokamp family is flipping the process around. Rather than seeing how much we spend and then saving the rest, we’re determining how much we need to save, and then spending the rest — what I’m calling “goals-based budgeting.”
The benefits:
It doesn’t require that you track every penny (though it does require regular monitoring and calculating).
It doesn’t require that you remember how much you’re allowed to spend on each category. Rather, you just keep tabs on one important number — how much you have in the bank — and adjust spending accordingly.
Money is kept in separate accounts and labeled with specific purposes.
For those who find spending difficult (yes, such people exist), this provides peace of mind that important goals are being funded, so it’s okay to enjoy something now.
Sound good? Here’s how to do it.
Step One: Figure Out How Much to Save Goals-based budgeting begins with — surprise! — your goals. Once you’ve identified them, you have to figure out how much they’ll cost, and how much you need to save on a regular basis to achieve them. Those topics require some soul-searching and number-crunching that deserve more than a passing mention. But in this article, mention them passingly I will, and point you to other articles, such as The Best Ways to Boost Your Retirement and How Much Should You Save for Retirement?, as well as some Foolish online calculators.
Step Two: Square Up What’s Left Over Now you need to make sure your savings calculation is compatible with your expenditures. This is where having a record of past spending comes in handy (nay, necessary). If you figure you’ll have to save 40% of your income to meet your goals, yet you spend 80% of your paycheck, you’ll have to adjust spending, goals, or both.
Step Three: Put It All on Autopilot One article I came across while searching for a better budget was “To ‘B’ or Not to ‘B’” on the website of Certified Financial Planner Sherrill St. Germain, a fee-only advisor in Nashua, N.H., and a member of the Garrett Planning Network. She calls her method “reverse budgeting,” and it starts with automatic transfers of money to several accounts. This includes her Roth 401(k) and health savings account, but also separate savings accounts with specific names, such as:
“Emergency Fund”
“Taxes” (which, as a self-employed person, she must pay quarterly)
“Maui” (her vacation)
And, possibly coming soon, “Mountain Bike”
Her online bank, ING Direct, allows her to maintain and label separate accounts (as do several other banks).
That takes care of the goals. For the spending part, St. Germain recommends an annual analysis of expenditures. Based on that analysis, have a certain amount transferred to your checking account each month to cover living expenses. This is the one number you have to keep an eye on as the month progresses, and will help you decide if you should purchase that pair of shoes or spiffy gadget. On the other hand, if it looks like you’re on track, you can spend guilt-free. Also, if you tend to have big-ticket items that show up annually rather than monthly — such as life insurance premiums or holiday gift giving — consider having a separate savings account for those.
Step Four: Monitor Regularly, Tweak as Necessary This system requires that you check your monthly expenses account once or twice a week to make sure you’re not running out of money before you’ve run out of month. As St. Germain wrote:
If that account dips below its predefined acceptable level, that’s a red flag that something’s not going according to plan. Could be overspending, could be under budgeting. Either way, it’s time to dig into the details, figure out what’s going on…
The monitoring of your goals doesn’t have to happen as often — maybe once a year — but it too is a crucial step in making sure you’ll have enough money when you need it.
In the End, Do What Works for You Having a plan for every dollar is probably the ideal from a financial perspective. But we know that system doesn’t always work for most people. A goals-based budget is another way to approach the process, and at this point it’s a work in progress (feel free to suggest your own budgeting tips in the comments below). But the best budget is the one that is adjusted for your situation, habits, and tolerance for looking at little numbers.
Your mental health is important. And with millions of people worldwide affected by some form of depression (not counting other psychiatric disorders), you shouldn’t feel alone if you need any type of mental health treatment. Chances are you even know others in the same boat.
Treatment may sound expensive. Even if you budget for healthcare, you probably don’t have hundreds of dollars to spend on a therapist’s weekly co-pay. Fortunately, healthcare providers are waking up to the necessity of providing diverse low-cost options for psychiatric help.
You can find a provider that meets your needs — at a price you can afford.
What’s Ahead:
How much does therapy cost?
A lot of variables can affect the cost of therapy. For an hour-long session, the typical range in the U.S. — without insurance coverage — is $65 on the low end to $250 on the high end. Most patients will pay between $100 and $200 per hour.
If you have insurance coverage, you’ll likely pay a smaller fee per appointment in the form of a co-pay, but these ranges also vary widely.
Online therapy platforms can offer a cheaper alternative. BetterHelp, for instance, charges prices in a general range of $60 to $90 per week for a weekly hour-long session.
Group therapy can also sometimes be a lower-cost option, starting at just $50 to $75 per hour. (And regardless of cost, many people appreciate the community support that group therapy provides.)
Factors that affect the cost of therapy
Insurance — If you have health insurance that covers the provider you want to see, you won’t pay the sticker price. Instead, the insurance picks up a portion of the cost of each session, and you pay the remainder, known as a co-pay. Without insurance, you’ll pay the full amount.
Location — You’ll pay more to see a therapist in high-cost cities (no surprise). Fortunately, large metropolitan areas may also have more therapy options in general, including affordable ones.
Your therapist’s training and level of education — Professionals with more experience and expertise can charge higher prices.
The type of practice — Therapists with private practices tend to charge more than therapists who are part of larger mental health clinics.
Length and duration of therapy session — Many therapists charge by the hour, which means the longer the session is, the more you’ll pay. Others charge flat rates per session. Similarly, a once-weekly-for-four-weeks program will of course be cheaper than once a week for six months.
Costs of different types of providers
Many healthcare services fall under the “therapy” umbrella, but not all are priced equally. Each service will fall within a slightly different price range depending on the provider’s credentials.
Psychiatrists are the most expensive. As official medical doctors, these providers can both offer therapy and prescribe medication, if medication is part of your treatment plan. Their rates can go from $100-$200 per hour. About half of psychiatrists in the U.S. accept insurance.
Psychologists are licensed to provide therapy but not medication. Their ranges are more modest, in the $70-$150 neighborhood. Psychologists provide long-term therapy that can address a range of issues, including depression and anxiety, but again, that’s without any medication such as anti-depressants.
Counselors tend to offer lower prices compared to psychologists. In general, counselors focus on short-term problem-solving centered on specific issues, like anxiety or addiction. Fees may be as low as $50-$80 per session.
Where to find free or affordable therapy
Thankfully, you don’t need to fork over a bunch of cash just to get the help you need. Here are some free or more affordable therapy options:
Get immediate help in a crisis
Crisis hotlines are always available — and free — if you need to talk immediately.
The U.S. has a free, 24/7 suicide prevention and crisis prevention hotline: just call 988 (similar to 911). If you’re considering self-harm or having suicidal thoughts, give them a call to speak with trained counselors.
Go through your insurance
Most insurance plans will cover some form of mental health treatment. Any plan purchased through Healthcare.gov, for instance, covers mental health and substance abuse — and can’t deny coverage based on a pre-existing condition. Medicaid and Medicare, in most cases, will offer mental health coverage.
The Mental Health Parity and Addiction Equity Act, passed in 2008, requires certain health plans to provide mental healthcare at a comparable level to physical healthcare. This includes financial requirements. For instance, you can’t have a higher co-pay for a psychiatrist visit than for a visit to your primary care physician.
Call the insurance company and ask for a list of professionals who accept your plan. They may also have a list on their website. Therapy coverage in particular varies from plan to plan, so it’s important to know the details.
It’s also worth noting that the 2008 legislation only covers patients with clinically diagnosed mental health conditions. If you don’t have a diagnosed condition and still want to see a therapist, your plan may or may not offer coverage.
If your insurance doesn’t cover the service you want, learn what they do cover — a plan that doesn’t include a therapist, for example, might cover a social worker.
Community healthcare resources
Some free and sliding-scale clinics cater specifically to the uninsured. To find a provider with a sliding scale fee — that is, a fee based on your level of income — this list of free clinics is a good place to start.
Training clinics at universities, where graduate students study to become psychologists, usually have sliding scales. If you live near any research universities — and if you’re in a city or large metropolitan area, you probably do — see if they offer this service. The students train under licensed practitioners, and your care’s always supervised.
Community mental health centers are another option. Often, the services are free or at a nominal cost for those below a certain income level. You can use an online locator through SAMHSA or HRSA to find community centers in your area.
You’ll want to have income information on hand, such as pay stubs. Check to see what other info you’ll need to provide. Community health centers often have long wait times, whether the clinic’s walk-in or appointment-based, so plan accordingly.
Therapy groups
Many practitioners offer group therapy at a lower cost than individual therapy. The National Alliance for Mental Health has group programs, and the American Group Psychotherapy Association can help you find a certified group psychoanalyst.
Online support groups like the forums at Psych Central provide a low-cost option you can access quickly. The Depression and Bipolar Support Alliance has a directory of both in-person and online groups. And this comprehensive list includes support groups designed around specific needs, such as eating disorders, anxiety, and alcoholism. Online groups can come in handy if transportation is an obstacle, too. Look for a group that has an impartial professional moderator.
Online databases
You can also search for an individual therapist online by location, specialty, insurance, or other identifiers. Some directories to get you started include the American Psychological Association, Psychology Today, Good Therapy, and Zencare.
Providers with specific specialties
Most healthcare professionals are trained to treat depression and anxiety, but other needs may require more specific therapy networks.
Here are some low-cost options for other mental health concerns:
Race- and sexuality-conscious providers
It may be important to you to have a therapist who shares your background or culture, or is aware of the unique challenges and joys that come with your identity. Some databases and support groups include:
Online therapy apps and resources
These days (especially post-pandemic), many individual and group therapists offer both in-person and online appointments (though not all do). There are also an increasing number of fully online therapy platforms, where you don’t even have to leave the couch.
Their prices tend to be cheaper than in-person services at the same level, but this also depends on the specific service and how many sessions you want. Some of these providers accept insurance, while others don’t; however, platforms that don’t take insurance may have lower out-of-pocket prices.
A few of the best-known online therapy apps include:
Some online resources offer free chat sessions with psychologists. Online group therapy can help here as well. You may not be seeing someone in person, but you can speak to a professional who understands your concerns, and to others who are dealing with similar issues.
Read more: How online mental health services can save you money
How to choose a therapist
Picking a therapist is a little like dating; it might take a while to find the right fit, and interpersonal rapport is essential. Most importantly, you want someone you feel comfortable talking to and someone you can trust.
Here’s how to vet who’s right for you:
Read therapist bios online
Almost all therapists and clinics will have websites where you can learn more about their credentials and expertise. At a minimum, they’ll usually indicate what type of practitioner they are (social worker, psychiatrist, etc.), and what formal credentials and education they have. You may also want to read online reviews of the practice, if those are available.
Many therapists have more detailed bios that list their areas of specialty and provide information about the demographics they usually work with. Maybe you’re looking for someone who specializes in working with people with disabilities, for example, or has experience counseling non-traditional families. If you have a specific issue you want to address (like substance abuse or social anxiety), you can look for a therapist who advertises this specialty.
Understand your goals for therapy
Sometimes it’s easy to pinpoint what you want to get out of therapy; for instance, if you want medication and talk therapy from the same provider, you’ll look for a psychiatrist.
Other times, your goals may be vaguer. If this is the case, a good therapist will work together with you to identify goals. It’s also possible (and expected) that your goals will change over time.
Ask interview-style questions
The introductory session is a chance for you and the therapist to learn more about each other. Some questions that will give you more insight include:
What’s your approach to therapy?
How do you find it best to solve problems?
What kinds of therapy do you practice?
Do you have experience working with people in situations like mine?
What activities do you like to do in your sessions?
Get a referral
If you have a doctor or primary care physician, they may be able to refer you to a therapist or psychiatrist if you ask. Even better, they may find someone who takes your insurance.
Work around scheduling issues
Ideally, your therapist’s availability will match your availability. In the real world, syncing your schedules might be more difficult. However, if there is a well-qualified provider you really seem to click with, it’s worth seeing how flexible they can be in their schedule.
Let providers know your availability, even if it conflicts with their hours. You may have options. If childcare’s an issue, let them know that too and find out what they recommend.
If the provider can’t accommodate you, and you’re not able to compromise, ask for referrals to similar low-cost providers. Psychiatric appointments often recur weekly or monthly, so it’s important to find a time commitment that works for you. You’re more likely to keep appointments, avoid cancellation fees, and have successful treatment.
Know the different styles of therapy
There are several common approaches to individual counseling, and one approach may work better than another for each person. Most therapists use a combination of styles, but some of them specialize in one or more.
The most frequent styles you’ll encounter include:
Psychoanalysis — The in-depth discussion of feelings, emotions, and relationships that most people think of when they picture therapy
Behavioral therapy — An action-oriented approach that focuses on replacing negative or destructive behaviors with helpful, positive behaviors
Cognitive-behavioral therapy (CBT) — A style that emphasizes changing your thought patterns and beliefs in order to change your actions
Dialectical behavior therapy (DBT) — A style that teaches emotional regulation, mindfulness, distress tolerance, and other skills
Eye movement desensitization reprocessing (EMDR) — An approach that focuses on the pairing of eye movements with troubling thoughts and memories to help you process these thoughts and recover
Trauma-focused therapy — An approach that addresses the impact of traumatic events in your life
Rational emotive behavior therapy (REBT) — A style that emphasizes challenging irrational and unhelpful beliefs and working towards more healthy beliefs and actions
Holistic or integrative therapy — A style that blends different approaches and tailors treatment to your needs
Person-centered or client-centered therapy — An approach that allows you to take the lead and discover solutions on your own, while the therapist listens and provides guidance as necessary
Try at least six sessions
By six sessions, you should have a good sense of whether your therapist’s approach fits your needs. (Six sessions is also the minimum amount of time insurance companies in the U.S. give therapists to make a diagnosis.) If not, it’s fine to choose to work with someone else — the goal is to find what’s best for you.
How to pay for therapy
Usually, you’ll pay either per hour or per session. Since the typical therapy session lasts an hour, this often works out to roughly the same amount. However, the payment plan may be different.
For example, online therapy services generally charge per session. You’ll pay a monthly fee that covers a certain number of sessions up front (say, two or four sessions a month).
Paying with insurance
Your therapist may submit claims to the insurance company, or you may submit these claims yourself. Typically, you’ll review how billing will work in your first session.
After your therapy sessions, your insurance plan will bill you directly for the co-pay amount you’re responsible for. If you’re unclear on what this amount is and when you’re expected to pay it — usually the first of every month, but each plan is different — contact your insurance provider.
Depending on your plan, your insurance company may limit the number of therapy sessions they’ll cover in a year. Or they may want periodic re-evaluations to make sure you still have a diagnosed mental health condition.
Paying without insurance
If you don’t have insurance or your preferred provider is “out of network” (meaning they don’t accept your insurance plan), you’re responsible for paying the therapist directly.
But this doesn’t always mean you’re on the hook for the full fee. Sliding scale plans are common, especially at clinics. With sliding scale plans, you pay a certain amount or percentage of the full price based on your income. You’ll need to submit some financial information, but you can save a lot of money. Providers don’t always advertise the sliding scale plans they offer, so it’s worth it to ask.
And if you have coverage but you’re working with an out-of-network provider, you can use a health savings account (HSA) or flexible spending account (FSA) to cover the fee. Mental health expenses qualify under most HSA and FSA plans.
Read more: How to pick a health savings account
Summary
I know all of this information might be overwhelming. If you’re already anxious, the last thing you want is a long to-do list.
But these tips should make life easier:
If you’re anxious about cost, don’t be shy about asking up front. Just because payment options aren’t immediately available on a website doesn’t mean they aren’t there.
Don’t be afraid to have healthcare providers walk you through the treatment process, repeatedly if necessary. That’s their job!
Take the time to find a therapist you’re comfortable with. It’s worth it.
Friends may be willing to help with some of the details — a ride to a clinic if you need one, a coffee date after a stressful appointment, or childcare in a pinch. You don’t know until you ask.
Prioritizing self-care is not selfish. You’ll be a better employee, friend, partner, or parent if you’re healthy in mind and body.
Disclosing your condition to an employer is totally up to you. Learn the company’s policy on sick days and personal days if you haven’t already, and provide proper advance notice for any appointments during work hours. Ultimately, your health is your business, not anyone else’s.
Georgia offers an affordable cost of living, top-notch schools and universities, and ample attractions, like the World of Coca-Cola, Forsyth Park, and Atlanta Botanical Garden. It’s also home to a diverse selection of reputable, member FDIC banks for individuals and small business owners.
No matter what your financial needs may be, you’re sure to find a good fit in the Peach State.
14 Best Banks in Georgia
We’ve made finding the best banks in Georgia effortless with our comprehensive list, so let’s dive straight into the options.
1. First Citizens Bank
Owned by First Citizens BancShares, First Citizens Bank has 56 branches across Georgia. As long as you sign up for paperless statements and make an initial opening deposit of at least $50, you won’t be on the hook for monthly maintenance fees.
With the First Citizens standard savings account, you’ll be able to earn interest without paying a monthly service fee or meeting a minimum balance requirement. The bank offers additional banking products, like credit cards, loans, retirement accounts, investment services, and insurance.
As a First Citizens customer, you can bank in-person at a local branch or perform account management online or via the robust mobile app.
2. Ally Bank
Ally Bank is a digital bank with a reputation for industry leading interest rates and low fees. While it doesn’t have a physical presence in Georgia, you can open and manage your accounts through Ally’s intuitive online and mobile banking tools. The Ally Interest Checking account online is a solid pick if you’d like to earn interest and don’t want to worry about annual fees or minimum balance requirements.
You can use the online portal or mobile app to pay bills online, deposit checks, and transfer funds. If you’d like to withdraw some cash, you’ll be able to do so at an Allpoint ATM for free with your Ally debit card.
Ally will also reimburse you if you make any out-of-network ATM reimbursements. In addition to the Ally interest bearing checking account, you might want to open the Ally Online Savings account, which comes with an impressive interest rate and savings bucket tools to help you meet your financial goals.
3. Axos Bank
Axos Bank is a digital bank that serves Georgians. If you’re in the market for checking accounts, you’ll have several options available to you. These include the Essential Checking, Rewards Checking, CashBack Checking, Golden Checking, and First Checking. Many of these accounts earn cash rewards or pay interest.
In addition to an Axos checking account, you might want to consider a high-yield savings account, high-yield money market, or a CD. You can also invest through Axos Invest, which is the bank’s free robo advisor. In addition, the bank offers 24/7 support for personal banking customers.
4. CIT Bank
CIT Bank is an online bank serving customers in all states, including Georgia. You can earn a competitive annual percentage yield or APY on various accounts without paying an arm and a leg for maintenance fees.
The CIT checking account requires a $100 minimum deposit but comes with interest and a free debit card. There’s also the Savings Builder account, which is a two-tiered savings account that requires a $25,000 balance or at least one monthly deposit of $100 or more.
Other options include the CIT Bank Money Market Account, certificates of deposit or CDs, home loans, and business accounts. You may download the CIT Bank app on your Android or IOS device to make mobile check deposits, pay bills, and use services like Zelle, Apple Pay, and Samsung Pay.
5. Renasant Bank
Headquartered in Mississippi, Renasant Bank has physical locations throughout Georgia. It’s a community bank with several checking account options. Each free checking account comes with perks like online bill pay, mobile banking, a debit card, and a switch kit so you can switch accounts without the hassle.
Renasant’s savings account lineup includes an interest bearing savings account, a savings account for children, a health savings account (HSA), and money market accounts.
If you’re interested in a loan, you can choose from personal loans, auto loans, and home equity lines of credit. In addition to personal banking services, Renasant provides mortgages and a plethora of business banking products. There’s also Renasant Rewards Extra, which gives you access to thousands of deals, cell phone insurance, identity theft protection, roadside assistance, and a health savings card.
6. United Community Bank
Based in Blairsville, United Community Bank is a regional bank with branch locations throughout Georgia, Alabama, Florida, Tennessee, South Carolina, and North Carolina. It’s insured by the Federal Deposit Insurance Corporation or FDIC and has been around since 1950. As a United customer, you can take advantage of more than 206 United ATMs and 1,260 Publix Presto! ATMs for free.
Its plethora of offerings include checking accounts, savings accounts, mortgages, credit cards, CDs, investing products, and business banking products. You can bank on the go via the convenient mobile app or use the online appointment scheduling tool to schedule an in-person appointment with a banker. If you have any questions or concerns, you can fill out a support form online and state whether you prefer an email or phone response.
7. Ameris Bank
Ameris Bank is a regional full-service bank with brick-and-mortar locations throughout Georgia in cities like Atlanta, Tucker, Woodstock, Marietta, and Oakwood. It offers three checking accounts with benefits such as a free Visa debit card, online banking access, e-statements, online bill pay, mobile banking, and Zelle transfers. In addition to checking accounts,
Ameris offers a plethora of savings accounts, including a personal savings account, personal money market account, minor savings account, health savings account, educational savings account, IRA, and CDs. You can also turn to Ameris for numerous mortgage options and down payment assistance. The bank provides personalized business banking solutions as well.
8. Bank of America
Bank of America is a well-known leader in the banking industry. Its financial centers and ATMs are present in various Georgia cities. From checking accounts, savings accounts, and credit cards to home loans, auto loans, and investing products, Bank of America offers it all.
The bank is also a great resource if you’re looking for small business banking products. Its Business Advantage Banking product is a business checking account with two settings to meet varying business needs.
While the Fundamentals setting has all the basic tools you need to manage your business, the Relationship setting is more robust and won’t charge you fees for wire transfers and electronic deposits. You can switch settings to accommodate your business needs at any time.
In addition to checking accounts, Bank of America offers small business loans, like SBA loans, commercial real estate loans, auto loans, and secured lines of credit.
9. Community Bank of Georgia
Based in Baxley, Community Bank of Georgia is a locally owned and operated bank with 24/7 ATM access. It aims to develop long-term relationships with account holders while offering a full suite of products and services.
The bank’s personal savings accounts include the regular savings account, Treasuresaver Club account for children ages zero to 13, a holiday savings account for holiday expenses, and a personal money market account for high interest savings opportunities.
Other personal banking products offered by Community Bank of Georgia include checking accounts and credit cards. The bank serves local business owners as well.
10. Chase Bank
The consumer banking arm of JPMorgan Chase, Chase is one of the largest national banks with a widespread presence in Atlanta. If you decide to open a deposit account at Chase with eligible Chase checking accounts, there’s a good chance you’ll qualify for a generous sign-up bonus.
You’ll also have access to a wide selection of products, including numerous checking accounts, two savings accounts, CDs with terms ranging from one month to 10 years, home mortgage loans, auto loans, home refinancing, and more. We can’t forget to mention that Chase offers Chase overdraft assist to help you avoid overdraft fees and inconveniences.
Thanks to Chase’s highly rated mobile banking app, you’ll be able to manage your account, make electronic transfers, deposit mobile checks, pill bays online, transfer money with Zelle, automate your savings, and set up account alerts. If you need assistance, you may reach out to Chase directly via phone or social media.
11. Morris Bank
Morris Bank is a local bank with branches in Georgia cities like Dublin, Gray, and Warner Robins. Regardless of which checking account you choose, you’ll enjoy access to free online banking, remote deposit services, online bill pay, and mobile banking.
When it comes to savings accounts, Morris offers the Savings Builder account, which will round up your purchases so you can save more money. In addition, the Blue Savings account allows for three free withdrawals per quarter.
The bank also serves small businesses in Georgia through checking accounts, savings accounts, business loans, treasury services, and merchant services. Even though it’s smaller than other banks on this list, Morris is technologically savvy and allows for online and mobile banking. Many residents believe Morris Bank is the best local bank.
12. Fifth Third Bank
Fifth Third Bank primarily serves the Midwest and has more than 33 banking centers and 80 ATMs at RaceTrac convenience stores. If you don’t want to visit a local branch, you can use the Fifth Third mobile app to transfer money, check balances and direct deposit transactions, and more.
While the bank’s most popular services are for individuals and small businesses, it also provides personalized wealth management solutions. These personalized wealth management solutions include private banking, wealth planning, trusts and estates, insurance, and investments.
As a wealth management customer, you can enjoy access to the Life360 site, which makes it easy to organize your finances and track your progress.
13. Truist Bank
Truist has physical locations in Georgia cities like Atlanta, Brunswick, Cartersville, and Pooler. Formerly known as BB&T, it offers a variety of personal and business banking products. You can select from five checking accounts, two savings accounts, one money market account, and CDs.
In addition to deposit accounts, Truist provides HSAs, prepaid cards, prepaid money account products, mortgages and home equity lines, personal loans, auto loans, investment products, retirement accounts, and personal insurance. Truist Mobile is the bank’s mobile app, which you may use to manage your account, deposit mobile checks, transfer money, locate branches, and pay bills.
14. Wells Fargo
Wells Fargo is a large national bank with more than 200 branches and over 600 ATMs in the Peach State. Just like most traditional banks, it offers a wide variety of banking products and services, such as savings and checking accounts, credit cards, home loans, personal loans, auto loan accounts, and investment accounts.
If you’re a small business owner in Georgia, you might want to consider Wells for business checking accounts, business savings accounts, business credit cards, small business loans, and merchant services.
The bank also offers a mobile app with LifeSync, a unique tool to monitor your spending habits and make smarter financial decisions. Additionally, Wells Fargo, which is considered the best national bank by many people, lets you automate your investing or work with a dedicated financial advisor.
Types of Banks in Georgia
There are several types of banks in the Peach State. Here’s an overview of the most common financial institutions you’ll find.
National Banks
National banks are banks with a presence across the country. Most of them have branches and ATMs in Georgia and other parts of the U.S.
These types of banks typically offer a diverse lineup of products and may be a solid choice if you have varying financial needs as an individual or small business owner.
Community Banks
Community banks serve specific geographic areas. They’re similar to credit unions in that they prioritize personalized customer attention. In Georgia, you may choose from numerous community banks like Ameris Bank, United Community Bank, and Morris Bank.
Online Banks
Also known as virtual banks or neobanks, online banks are tech forward and make it easy to perform various banking needs online or via mobile devices. While they don’t have physical locations in Georgia, they do offer many perks that you might not be able elsewhere.
Some examples of online banks that serve Georgia residents are Ally Bank, CIT Bank, and Axos Bank. With these financial institutions, you may be able to avoid a monthly fee and secure a competitive annual percentage yield or APY.
Common Banking Products
It’s wise to figure out what types of banking products meet your particular banking needs. Several of these products include:
Checking Accounts
Checking accounts are ideal for everyday purchases. You can also use them to make deposits, pay bills, and more. Some checking accounts might charge monthly service fees or impose minimum opening deposits. However, they might waive them if you take certain actions, like enroll in autopay or sign up for paperless statements. To access your checking account funds, you can visit a local branch or ATM. Depending on the bank, you may even find a checking account that pays interest.
Savings Accounts
Savings accounts are places to store your cash for various personal finance goals, like a house down payment, new car, or even a dream vacation. It’s also a great place for an emergency fund, which features three to six months worth of expenses. In general, online savings accounts pay out higher interest rates than traditional savings accounts. You’ll likely be able to make six free withdrawals per month.
High-Yield Savings Accounts
Compared to traditional savings accounts, high-yield savings accounts offer much higher interest rates. Typically, they don’t charge monthly or annual fees. If you’d like to open a high-yield savings account, consider an online bank as they’re not always available at traditional banks.
Certificates of Deposit
Certificates of deposit (CD) allow you to store your money for a certain amount of time while you earn interest. With a CD, you’ll usually be required to make a minimum initial deposit and choose a term. Typically, the longer the CD term, the higher interest rate you earn. If you’re looking for guaranteed returns, a CD is a solid choice.
Credit Cards
Credit cards are a suitable option if you’d like to earn rewards, like cash back, travel points, gift cards, and merchandise. While some are free, others come with annual fees. Do the math and make sure an annual fee is worth the benefits before you go ahead and move forward with it.
Loans
These days, many financial institutions offer loans. Some loans are for personal use, such as personal loans, mortgages, and car loans. Other loan options are designed for businesses, like SBA loans, commercial real estate loans, and business lines of credit. Before you commit to a loan, review the interest rates and terms to ensure you can pay it back on time.
How to Choose a Bank in Georgia
As you can see, not all Georgia banks are created equal. In fact, there are many options at your disposal. To help you hone in on the right bank for your unique needs, we encourage you to consider these factors.
Accessibility
Most traditional banks have local branches throughout the Peach State. If you prefer an in-person banking experience, this is great news. However, you’ll likely be able to lock in better interest rates and lower fees if you opt for an online bank with less overhead costs. Fortunately, traditional and online banks usually both have mobile apps so you can bank from just about anywhere.
Fees
Some examples of common banking fees you might come across include monthly maintenance fees, ATM fees, overdraft fees, wire transfer fees, account closing fees, and dormancy fees. When you shop around for the perfect bank in Georgia, you’ll notice that larger banks with physical branches tend to charge more fees and higher fees than online banks.
Minimum Balance Requirements
Depending on the bank and accounts you choose, you might have to maintain a minimum balance. If you don’t, you’ll likely be on the hook for fees. Before you pursue a certain account, make sure you can comfortably afford the minimum balance requirement. The minimum balance may be thousands of dollars, so this is an important factor to consider.
Product Options
Before you look for a Georgia bank, ask yourself what products and services you need. Maybe you’re seeking a personal checking account and savings account. Or perhaps you’re a Georgia business owner and in the market for business credit cards or business loans. Typically, national banks offer a greater selection of products and services than regional banks and credit unions.
Customer Service
There’s a good chance you’ll have questions or concerns once you decide on a bank. For this reason, it’s important to choose a financial institution with high customer service ratings and easy access to customer support. While some banks offer 24/7 customer service via phone, email, and live chat, others will only help you during select business hours.
Reviews
Be sure to read reviews from real customers on reputable review sites. If you notice many negative reviews about the same topics, you may want to be cautious and look to other banking institutions. It’s also a good idea to check out ratings on websites, like Better Business Bureau (BBB) and Consumer Affairs. In addition, don’t be afraid to ask family and friends for their recommendations on banks.
FDIC Insurance
FDIC insurance will keep your money safe in the event your bank fails. The FDIC usually insures up to $250,000 per depositor. In addition to deposit accounts, it covers money orders, cashier’s checks, and other official products. Before you open an account at a bank, make sure it’s FDIC insured. Most banks have the FDIC insurance logo on their websites.
Extras
Some banks go above and beyond and offer more than traditional banking products and services, like checking accounts and savings accounts. You may want to look for extra perks like overdraft protection or assist credit monitoring services, introductory offers, foreign currency exchange accounts, robo advising, and credit cards with impressive rewards.
Values
If you visit a bank’s website, you’ll know what it values. One bank might prioritize long standing customer relationships while another one is a socially responsible bank. If you’re debating between two banks, consider each institution’s values to help you make a decision.
Bottom Line
The Peach State has no shortage of banks. However, the right one for you depends on numerous factors, like your preferred products and services, the types of fees you can afford and are willing to pay, and whether you’d like to bank online or in-person.
If you’re unsure of which bank makes the most sense for your situation, don’t hesitate to open accounts in a few of them. From there, you can hone in on the best option. Good luck with your search for the ideal bank in Georgia.
Frequently Asked Questions
What are the largest banks in Georgia?
The largest banks in Georgia have the most branches throughout the state. These include Bank of America, Truist Bank, Ameris Bank, Fifth Third Bank, and Wells Fargo. All of these institutions are known for their extensive ATM networks and diverse product lineup.
How do I open a bank account in Georgia?
In most cases, you can open a bank account on the bank’s website or mobile app. You’ll likely need to submit a government-issued ID, like a driver’s license or passport, as well as personal information, such as your Social Security number.
What are some community banks in Georgia?
The Peach State has many community banks. The most popular options are Community Bank of Georgia, United Community Bank, Mountain Valley Community Bank, and Gwinnett Community Bank. Community banks are a solid choice if in-person service is important to you.
How can I avoid bank fees in Georgia?
If you don’t mind online or mobile banking, you’ll likely find fewer fees at an online bank. Also, some traditional banks may allow you to waive their fees. Since fees can eat into your savings and financial goals, you should do your best to avoid or reduce them.
Should I open an account at different banks in Georgia?
If you have large amounts of cash, you might want to open accounts at different banks. This is because the FDIC usually insures up to $250,000 per depositor and bank. This holds true even if you have several accounts with the same bank. You may also want to open different accounts if you want to take advantage of different benefits.
Is it better to choose a small bank or a large bank in Georgia?
Big banks offer a greater selection of products and services than small banks. But you might have to pay a monthly maintenance fee or make a minimum opening deposit. Small banks, on the other hand, take the time to get to know their customers and provide more personalized service. The ideal banking size depends on your particular priorities.
How can I easily switch bank accounts in Georgia?
First, gather basic information like your Social Security number or Tax Identification Number. Then, start the application process, fund your new accounts, and transfer funds from older accounts. Don’t forget to set up direct deposits and automate recurring payments. Some banks offer switch kits to simplify this process.
Taxes are unavoidable but that doesn’t mean you have to pay more than you owe. What happens to your tax liability with proper financial planning? The simple answer is that it can allow you to minimize what you owe while preserving more of your income to fund your financial goals. Talking to a financial advisor is a good first step in creating a strategy for effectively managing tax liability.
Understanding Tax Liability
Tax liability refers to the money that an individual, business or organization owes to a federal, state or local tax authority. A simpler way to think of your tax liability is the difference between your taxable income and the tax deductions you’re able to claim.
As a general rule of thumb, earning a higher income can result in a higher tax liability. The U.S. uses a graduated tax system, which means that income and tax rates move together. As income increases, so does your tax rate.
The amount you pay in taxes is determined by your income, but capital gains can also affect your tax liability. That’s important to know if you’re focused on investing and building wealth, as higher net-worth individuals may face a steeper tax liability if they’re reaping capital gains from investments.
What Happens to Your Tax Liability With Proper Financial Planning?
Managing your tax liability is important as it can directly influence how much of your income or investment earnings you get to keep. The more income and assets you have to work with, the easier it becomes to build wealth.
Proper financial planning can help you implement strategies that are designed to minimize taxes while maximizing income and assets. Having a solid financial plan in place can generate significant tax savings year by year. You can then use those savings to generate additional income through investments, grow your retirement accounts and increase your net worth.
Does financial planning require you to work with a financial advisor? Not necessarily. You could always go it alone. But there are some distinct advantages to having a financial advisor help you formulate a plan for managing tax liability.
Financial advisors have extensive knowledge about how tax planning can affect your financial plan. A good advisor is also familiar with the tax code and the latest tax rules. Even if you think you have a relatively straightforward tax situation, a financial advisor may be able to pinpoint areas where you can improve tax efficiency that you might have missed.
Financial Planning Strategies for Minimizing Tax Liability
There are different ways to approach tax planning in order to reduce your tax bill, depending on the specifics of your situation. If you’re working with a financial advisor to create a tax plan, then it may include any or all of the following.
Retirement Planning
Retirement planning is a focal point of a solid financial plan, particularly with regard to taxes. Aside from ensuring that you have enough money to retire, it’s also important to consider how much of your savings you’ll be able to keep once you start making withdrawals.
In terms of how you plan for retirement, your financial advisor may suggest any of the following:
Maxing out annual contributions to a traditional 401(k) or to a Roth 401(k) if you have that option.
Contributing money to a traditional or Roth IRA each year.
Funding a Health Savings Account (HSA) if you have that option with a high deductible health plan.
If you’re self-employed or own a business, you might open a solo 401(k), SEP IRA or SIMPLE IRA to save for retirement instead. It’s important to understand the tax treatment of different retirement savings options.
For example, traditional 401(k) plans and traditional IRAs allow for tax-deductible contributions. Qualified distributions are taxed as ordinary income in retirement. Roth accounts don’t offer a tax deduction, but you can make withdrawals tax-free when you retire.
A Health Savings Account is not a retirement account, per se. It’s meant to be used to save money for medical expenses, but it can double as a source of retirement income since you can withdraw funds for any purpose after age 65 without a tax penalty. You’ll just owe regular income tax on withdrawals.
Investment Planning
Investment planning is related to retirement planning, but it can include different aspects of managing tax liability. For instance, say that you’re investing through a taxable brokerage account, which is subject to capital gains tax. Your financial advisor can offer different strategies for managing tax liability, which may include:
Holding investments longer than one year to take advantage of the more favorable long-term capital gains tax rate.
Choosing tax-efficient investments, such as exchange-traded funds (ETFs), which can trigger fewer turnover events than traditional mutual funds.
Harvesting tax losses to offset some or all of your capital gains for the year.
Your advisor may also be able to guide you on how to deduct expenses related to investment properties if you own one or more rental homes. They could also help with executing a 1031 exchange if you’re interested in swapping out one property for another to minimize capital gains tax.
Tax Deductions and Credits
Tax deductions reduce your taxable income, which can help to push you into a lower tax bracket for the year. There are numerous expenses you might be able to deduct, including:
Mortgage interest
State and local taxes
Charitable donations
Business expenses
Self-employment expenses
Medical expenses
Student loan interest
Tax credits, meanwhile, reduce what you owe in taxes on a dollar-for-dollar basis. For instance, if you owe $1,000 in taxes and qualify for a $1,000 tax credit, the credit can wipe out what you owe. Some credits are refundable which can increase the size of your tax refund for the year. A financial advisor can walk you through the various deductions and credits you might be eligible to take in order to reduce your tax liability.
Withdrawal Planning
As you approach retirement, it’s important to consider how you’ll withdraw the money that you’ve saved. Your advisor can discuss different strategies for withdrawing money from a 401(k), IRA or taxable brokerage account so that you’re not overpaying taxes or draining your retirement reserves too quickly.
Your advisor may also discuss ways to tax-friendly ways to create supplemental income in retirement, such as purchasing an annuity or taking out a reverse mortgage. An advisor can also help you figure out when to take Social Security benefits to maximize your payment amount and how to coordinate those benefits with other sources of income in retirement.
The Bottom Line
Knowing what happens to your tax liability with proper financial planning is important for creating a long-term strategy for growing wealth. Handing over more money than you need to in taxes doesn’t offer any tangible benefit and it can be problematic if it leaves you with less money to save and invest. Having a trusted financial advisor to work with can ensure that you’re meeting your tax obligations without shortchanging your goals.
Financial Planning Tips
Tax planning can seem complicated if you’re not well-versed in the Internal Revenue Code. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Robo advisors can offer a more affordable way to manage financial planning, as the fees may be lower than what traditional advisors charge. However, it’s important to know what you’re getting for the money. For example, some robo-advisors offer tax loss harvesting but not all of them do. Additionally, robo-advisors aren’t really equipped to offer one on one advice about tax planning or investing. Those are good reasons to consider working with a human advisor instead, even if it means paying a slightly higher fee.
Rebecca Lake, CEPF®
Rebecca Lake is a retirement, investing and estate planning expert who has been writing about personal finance for a decade. Her expertise in the finance niche also extends to home buying, credit cards, banking and small business. She’s worked directly with several major financial and insurance brands, including Citibank, Discover and AIG and her writing has appeared online at U.S. News and World Report, CreditCards.com and Investopedia. Rebecca is a graduate of the University of South Carolina and she also attended Charleston Southern University as a graduate student. Originally from central Virginia, she now lives on the North Carolina coast along with her two children.
Lately, my dad’s been praising the benefits of having a health savings account. This year, he had the opportunity to get the most of his HSA — bad news for his health, but good news for his wallet (side note: Dad is now doing OK health-wise). If you have one or are considering one, here are all the HSA pros and cons to consider.
But first, if you are looking for the 2016 and 2017 annual contribution limits for HSAs, here you go:
2016: $3,350 if you’re an individual and $6,750 if you’re saving for a family.
2017: $3,400 if you’re an individual and remains unchanged at $6,750 for families.
I’ve spent time researching, calculating and mulling over whether an HSA is the best option for me. After a few conversations with Dad, I decided to put together a pro and con list to help me both understand HSAs and decide if I should open one.
First, the basics:
What is an HSA?
An HSA is a highly tax-advantaged account that lets you save money for health-related expenses. It’s essentially like an IRA or a savings account for your health. And, after you turn 65, it’s even more similar to an IRA, because you can take out money for non-health expenses.
Who Can Get an HSA?
An HSA is always tied to a High Deductible Health Plan, or HDHP, and many will get them through work. A survey by the Kaiser Family Foundation revealed its mostly larger employers that offer HSAs: Fifty-two percent of firms with 1,000 or more workers offered this type of plan while only 25% of firms with 3 to 199 workers did. What’s most important to know here is that you can’t have an HSA if your health care comes from an HMO or a PPO — it has to be a high-deductible health plan. The IRS defines HDHPs this way:
“For calendar year 2016, a ‘high deductible health plan’ is … a health plan with an annual deductible that is not less than $1,300 for self-only coverage or $2,600 for family coverage, and the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed $6,550 for self-only coverage or $13,100 for family coverage.”
This should not be confused with a flexible spending account or FSA which can be used in conjunction with a traditional HMO or PPO.
Related >> Readers share their experiences with HSAs
Pros of Opening an HSA
Flexibility of Uses
You can use money from your HSA to pay for a slew of health expenses, from contact lenses to acupuncture, mental healthcare or a midwife. You might be surprised at some of the things you can buy with your HSA money. HSA Center has a complete list of eligible purchases.
Tax Incentives
The money you put in the HSA is tax-deductible. Also, the money you withdraw isn’t federally taxed, as long as you spend it on approved, health-related stuff. The HSA’s interest income isn’t federally taxed, either.
No ‘Use-It-or-Lose-It”
Unlike a Flexible Spending Arrangement or FSA, dollars in your HSA can rollover year to year.
You can Earn Interest
I think the amount of interest I earned recently was something like six bucks. So my initial reaction is whoop de do, but my frugal side reminds me that every little bit helps.
Responsible Planning
The most obvious benefit of the HSA is that you’re funding the future. You’re being responsible. The HSA is an emergency fund for your health.
You Can Take It With You
With an HSA, you can take your balance with you if you leave a company. And if you really hit tough times, you can even withdraw the HSA money to pay for non-health expenses. Of course, you’ll be taxed on that — plus, you’ll pay a penalty.
Related >> Health insurance options for the self employed
Retirement Advantage
After age 65, you can use your HSA savings as retirement money. You’re free to spend it, penalty free, on non-health expenses.
Free Preventive Procedures
Wellness procedures — breast exams, cancer screenings — are usually not subject to the HSA-compatible plan’s deductible. Those office visits are covered before the deductible, and often, they’re free. Of course, many traditional insurance plans have that same benefit.
Cons of Opening an HSA
Restrictions
There are limits to how much you can save. For 2016, you can only sock away $3,350 if you’re an individual and $6,750 if you’re saving for a family. In 2017, the contribution limit rise to $3,400 if you’re an individual and remains unchanged at $6,750 for families. Also, you can’t use money from your HSA to pay for your health insurance premium — unless you’re unemployed.
Cost of Office Visits and Prescriptions
I compared my traditional Blue Shield plan with their HSA-compatible plan, an HDHP. With the HSA, I’d be responsible for paying the full amount of doctors’ visits and prescriptions — until I met the deductible. But the deductible is $6,000 — I’m probably not going to reach that. If I have a couple of non-preventive office visits and prescription expenses a year, the HSA plan would end up costing me several hundred bucks.
Compared to my traditional plan, which requires that I pay $35/visit and $10/prescription (before the deductible), I could actually be spending more for the HSA plan — even considering the tax savings. I suppose it depends on what health issues arise and how much I’m willing to contribute.
Fees
Unsurprisingly, like any other bank account, an HSA comes with its share of fees. They vary, but from my research, most seem to have a start-up fee, transaction fee, debit fee, and in some cases, a monthly maintenance fee. Some may even have a minimum account balance fee.
State Tax
Even though the federal government allows deductions of HSA contributions, a few states don’t follow suit. Please check on your state’s policy before making any decisions on the tax merits of an HSA. Here’s one list of HSA policies by state to consider.
Not Meeting the Deductible
In all, the health expenses you may have to pay with an HSA plan could outweigh the tax savings. For example, one reader mentioned that the amount he pays in his prescriptions for the year makes the HSA not worth it. If the deductible isn’t being met, I can understand that. This seems to be one of those “it depends on the situation” scenarios.
But of course, it’s not just about tax incentives — the point of the HSA is also to save for the future. In the end, that seems to be what it comes down to, whether you’re using an emergency fund or an account with tax incentives. In my dad’s simple but shrewd words: “The bottom line is: save, save, save — as much as possible. Trust me, you will need it .”
If you’ve passed on an HSA, why wasn’t it worth it to you?
A credit union is a nonprofit institution that’s owned by its members. Compared to a traditional bank, a credit union tends to offer more personalized service.
You can turn to a credit union for a variety of financial products, like checking and savings accounts, credit cards, car loans, and mortgages. Some regional and federal credit unions also offer wealth management services and other extras.
A typical credit union only accepts members who live in a specific region or work for an eligible employer. For example, they may require that you’re a resident of Atlanta, Georgia or work as a teacher.
The good news is some credit unions require less and make it easy for just about anyone to join. If you’d like to join a credit union but don’t want to worry about the strict membership requirements at most institutions, you’ve come to the right place.
38 Best Credit Unions Anyone Can Join
There are hundreds of credit unions that anyone can join, but we’ve done the heavy lifting and found the best ones for you. The credit unions below, which are overseen by the National Credit Union Administration (NCUA) may be an option for you, regardless of what you do for a living or where you’re located.
Just keep in mind that you may have to make a donation, join an organization, live in a certain state, or meet some other eligibility requirement. We encourage you to explore this lengthy to list of credit unions anyone can join so you can hone in on the ideal credit union for your unique situation.
1. Alliant Credit Union
Alliant Credit Union made its debut in 1935 to serve the employees of United Airlines. It stands out for it high-interest savings and checking accounts with low minimum opening deposits as well as excellent customer service.
You’ll also receive access to more than 80,000 free ATMs across the U.S. and get reimbursed up to $20 in out-of-network ATM charges per month. Since it only has two brick-and-mortar locations, you should feel comfortable with online banking. If you’d like to join Alliant Credit Union, make a $5 donation to Foster Care to Success.
2. Connexus Credit Union
Connexus Credit Union was founded in 1935 and has a widespread presence in Wisconsin as well as more than 54,000 ATMs across the country. It couldn’t be easier to join the credit union as all you have to do is pay a one-time $5 fee to the Connexus Association, which supports financial education through college scholarships.
As a member, you can open one of its three checking options with high APYs and a traditional savings account or one that’s specifically designed for the holidays.
3. Pentagon Federal Credit Union
Pentagon Federal Credit Union, or PenFed, was founded in 1935 as a credit union for military and civilian government. Today, this Virginia-based credit union has opened it doors to anyone as long as they open a savings account and deposit a minimum of $5. It offers two savings accounts, including the Regular Savings and Premium Online Savings.
In addition, you can find checking accounts, CDs, and money market accounts. Other products include Coverdell Education Savings Certificates, IRAs, credit cards, mortgages, home equity loans, and student loans. Plus, you can enjoy modern perks like mobile check deposits, online bill pay, and instant transfers.
4. First Tech Federal Credit Union
First Tech Federal Credit Union is headquartered in California. The credit union offers many benefits, such as excellent customer service, many branches throughout the U.S. and Puerto Rico, online banking, and mobile banking.
It also has the Dividend Rewards Checking Account, which gives you 1.00% APY on balances below $1,000. You don’t have to live in California to join as long as you donate to a nonprofit called the Financial Fitness Association.
5. Consumers Credit Union
Consumers Credit Union was established in 1951 as a local credit union. Based in Illinois, it’s one of the largest credit unions in the state with over 100,000 members and more than $1.2 billion in assets.
You can join it, even if you don’t live in Illinois. All you have to do is donate the $5 membership free to an affiliated nonprofit. You can open almost all of its accounts online, except for the checking accounts and IRAs. The credit union also offers a high-yield checking account that offers high interest if you meet certain criteria.
6. Langley Federal Credit Union
Langley Federal Credit Union is based in Virginia and made its inception in 1936. At that time, members of the National Advisory Committee for Aeronautics, the predecessor to NASA, chartered the credit union.
Today, Langley offers membership to anyone who pays a fee to support an important cause in Virginia and deposits at least $5 into a savings account. You can choose from a checking account without a monthly fee, a variety of no-fee savings accounts with competitive interest compounds monthly, and Visa Cards with cash back rewards.
7. Lake Michigan Credit Union
Lake Michigan Credit Union made its debut in 1933 by a group of teachers. Headquartered in Grand Rapids, Michigan, it has 51 branches in Michigan and southwest Florida. Since it’s part of the Allpoint ATM network, members can enjoy free access to more than 55,000 free ATM.
To join, donate $5 to the ALS Foundation and deposit $5 into a Member Savings account. Once you do, you can earn perks through the MORE rewards program and redeem them for complimentary checks and free out-of-network ATM transactions.
You may also open the free, no frills Max Checking account. Note that the Member Savings account, which you must open to become a member, requires a minimum daily balance of $300 or you’ll be charged a $5 monthly fee.
8. Lafayette Federal Credit Union
Lafayette Federal Credit Union was founded in 1935 as an alternative to traditional banks. It offers numerous perks, like no minimum balance requirement or monthly maintenance fees, online banking, mobile deposits, free direct deposit, and special discounts.
You can join it if you live, work, worship, or attend school in Washington D.C. If you live outside the D.C. area, you may still become a member as long as you invest in a lifetime Home Ownership Financial Literacy Council (HOFLC) membership for only $10. This nonprofit focuses on helping consumers navigate the path to homeownership.
9. Affinity Plus Federal Credit Union
Affinity Plus Federal Credit Union has 26 branch locations across Minnesota. APFCU offers MyPlus Rewards that gives you points if you keep a certain amount of money in your bank account or use its debit or credit card.
To be eligible to join, all you have to do is donate $25 to the Affinity Plus Foundation and open a basic savings account. If you live and work in Minnesota or have a family member in the state, there are other ways to become a member.
10. Chevron Credit Union
Chevron Credit Union has been around since 1935 and has 19 branches that span six states, including California, Louisiana, Mississippi, Texas, Utah and Virginia. It operates under two brands: Chevron Federal Credit Union and Spectrum Credit Union.
To become a member, join one of its nonprofit partner organizations, such as the Contra Costa County Historical Society. You’ll also need to deposit $25 into a primary savings account and maintain a $25 minimum balance.
Chevron also offers a second chance checking account called New Solutions for those who need help rebuilding their banking history.
11. Ascend Credit Union
Since its inception in 1951, Ascend Credit Union has offered a variety of products, like checking and savings accounts, a money market account, Christmas Club account, youth accounts, credit cards, and loans.
If you’re interested in these services, join The Nature Conservancy, Tennessee Chapter and you’ll be eligible automatically. Note that there is a one-time fee of $25.
12. Hope Credit Union
Hope Credit Union is a black-owned credit union that was organized in 1995 by the Anderson United Methodist Church in Mississippi. You can join if you pay a $10 membership fee and show a foreign passport, permanent resident card, or Matricula Consular. Plus, you may use an ITIN number instead of a Social Security number.
Hope Credit Union provides a number of personal bank accounts, business banking accounts, and transformational deposits. With its transformational deposits, you can participate in socially responsible investing.
13. Boeing Employees Credit Union
Boeing Employees Credit Union, or BECU, was established in 1935 for Boeing employees and currently caters to more than 1 million members. But despite its name, you don’t have to work at Boeing to join.
Its products and services are available to you if you become a member or donor to the KEXP, which is a nonprofit art organization or the Sea Hawkers Central Council. The most noteworthy benefit of joining is the first-time homebuyer grant in which you can receive $7,500 toward your down payment and closing costs.
14. Hiway Credit Union
Hiway Credit Union made its debut in 1931 to serve employees of the Minnesota Department of Transportation. It offers a free checking account with no monthly fee or minimum balance requirements, a free money market account with a $500 minimum deposit, credit cards, and loans.
You can qualify for a Hiway Federal Credit Union membership if you donate to the Minnesota Recreation and Park Foundation for $10 per year or the Association of the U.S. Army, which costs $40 for two years.
15. GreenState Credit Union
GreenState Credit Union was founded in 1938. It provides its members with personal accounts, business accounts, credit cards, loans insurance, wealth management services, and more.
GreenState was named one of the fastest growing credit unions in 2021. As long as you live or work in the state of Iowa, you can become a member and take advantage of its services without any issues.
16. Cascade Credit Union
Cascade Credit Union made its debut in 1952 to serve employees of the Cascade Division of the Great Northern Railway. Today, it’s open to many people and offers great perks like members-only sweepstakes, competitive rates, online banking tools, financial counseling, and group insurance benefits.
If you’d like to join, simply become a member of the Great Northern & Cascade Railway Association (GNCR) and pay an annual membership cost of $40. The credit union can help you fill out your application online or in-person at a local branch.
17. Wildfire Credit Union
Wildfire Credit Union began in 1937 as Saginaw Telephone Employees Credit Union, its original credit union name. Its first location was in the basement of the home of Hank Kosk, the credit union’s treasurer.
After some office upgrades, the credit union opened the doors to its current location on Bay Road in Saginaw and merged with Flint Telephone Employees Credit Union that same year. Today, Wildfire Credit Union offers several deposit accounts as well as personal banking and business banking services. You can join if you live, work, worship, or attend school in Michigan.
18. Nextmark Credit Union
Nextmark Credit Union made its debut in 1958. Its offerings include personal and business checking, home equity loans, personal loans, credit cards, gift cards, and more.
To join, you must live in a qualifying county in Virginia or make a donation to Herndon Elementary PTA, a Title I school.
19. Technology Credit Union
Technology Credit Union, or Tech CU, was established in 1960. It’s based in Silicon Valley and provides its members with no shortage of benefits. These include competitive rates, online banking, access to fee-free ATMs, free credit score monitoring, conference room space, and easy online appointment booking. To become a member, join Financial Fitness Association for only $8.
20. Veridian Credit Union
Veridian Credit Union was established in 1934. Most of its members are those who live or work in Iowa or certain counties of Nebraska. However, it’s open to anyone who is a registered user of Dwolla, a financial technology company. This means you can join as long as you sign up for a personal account at Dwolla.
You’ll also need to open a savings account and deposit at least $5. If you’re already a member of a credit union or bank but would like to switch to Veridian Credit Union, the switch kit may be helpful.
21. Harborstone Credit Union
Harborstone Credit Union’s roots date back to 1955, when it was known as McChord Federal Credit Union and served airmen on the McChord Air Force Base. In 1996, the credit union expanded its membership to anyone in the state of Washington and changed its name as a result.
As long as you live, work, or worship in Washington, you may join Harborstone Credit Union and enjoy a variety of financial products and digital tools.
22. NASA Federal Credit Union
NASA Federal Credit Union began in 1949 to serve NASA employees. Since then, it’s grown to more than 177,000 members. While the credit union is headquartered in Upper Marlboro, Massachusetts, there are 12 branches in Maryland, Virginia, and Washington, DC.
Its product lineup includes a simple checking account with no minimum opening deposit, a savings account with a great rate, and several CDs. You can also monitor your credit score and make deposits with the mobile app. If you don’t work for NASA, you can still join. Simply sign up for a one-year membership at the National Space Society (NSS).
Hanscom Federal Credit Union opened in 1953. The credit union has over 20 branches in and around Boston as well as one in McLean, Virginia. It offers fee-free checking accounts, savings accounts with rewards, credit cards, and loans.
To join, you’ll need to support one of its partner organizations, such as the Burlington Players, a volunteer theater group. In addition, you’ll be required to deposit $25 into a free primary savings account.
24. Pen Air Federal Credit Union
Pen Air Federal Credit Union was founded in 1936 to support civil service employees of Naval Air Station Pensacola. It has 16 locations in northwest Florida and southeast Alabama. You may be surprised to learn that you don’t have to be an active duty or retired military member to join.
You’ll be able to take advantage of Pen Air Federal Credit Union if you become a member of the Friends of the Navy-Marine Corps Relief Society and deposit a minimum of $25 into a savings account. As a member, you can enjoy the Pen Air Platinum Mastercard, Share Savings account with the Round It program, and more.
25. State Department Federal Credit Union
State Department Federal Credit Union was founded in 1935. To join, you can become a member of the American Consumer Council for $8. This is a non-profit organization with a focus on consumer education and financial literacy.
The State Department Credit Union offers a long list of products and services, including basic, advantage, and privilege checking, a money market account, share certificate accounts, individual retirement accounts (IRAs), credit cards, and loans.
26. United Nations Federal Credit Union
United Nations Credit Union made its debut in 1947. As long as you join the United Nations Association of the United States of America, you can become a member.
UNFCU has a vast product lineup that includes a checking account, membership savings account, credit cards, debit cards, and loans, like car loans and debt consolidation loans.
Other membership perks include loyalty rewards, credit card rewards, and the member referral program.
27. Premier Members Credit Union
Premier Members Credit Union was established in 1959 for members of the Boulder Valley School District. You’re eligible to join if you make a donation to Impact on Education, a charity in the Boulder Valley School District, and open an online savings account or youth savings account.
As a member, you can expect perks, such as high interest rates on checking accounts, no monthly service fee, no overdraft fees, and free overdraft protection. The credit union also offers an extensive network of branches and ATMs for your convenience.
28. SRI Federal Credit Union
SRI Federal Credit Union is headquartered in Menlo Park, California. It was founded in 1957 and offers membership to anyone who joins the Financial Fitness Association for $8 per year.
The credit union’s account offerings include a checking and savings account, money market account, IRA, health savings account, and youth, teen, and gradate accounts.
29. United States Senate Federal Credit Union
United States Senate Federal Credit Union has been around since 1935. Its mission is to “improve the financial wellness of members throughout all stages and circumstances of life.” Its products are similar to what most credit unions offer.
As a member, you can enjoy access to a number of checking and credit union savings accounts, mortgage loans, personal loans, auto loans, Visa debit cards, and business advisory services. To join, you’ll need to become a member of the U.S. Capitol Historical Society for $65.
30. Wings Financial Credit Union
Wings Financial Credit Union was founded in 1938 by seven employees from Northwest Airlines. To date, it serves more than 320,000 members with more than $7.5 billion in assets. You can join if you donate $5 to the Wings Financial Foundation, even if you don’t work in the aviation industry.
There are no fees on its basic banking accounts, including its checking and savings accounts, a money market account, and CDs. Its high yield savings and checking accounts offer competitive rates to help you grow your money.
31. Skyward Credit Union
Skyward Credit Union was chartered in 1941. It offers a share savings account with competitive rates, an aim higher checking account with no monthly fees or minimum balance requirements, affordable mortgage and home equity loans.
It also offers online banking, a variety of insurance products, and access to over 30,000 surcharge-free ATMs. Like most credit unions require membership, so does this one. To become a member, join the Kansas Aviation Museum.
32. San Diego County Credit Union
San Diego County Credit Union has been around since 1938 and has over 430,000 credit union members. It’s considered the largest locally owned financial intuition in San Diego.
As a member, you can enjoy a free checking account, secured and unsecured credit cards, a wide range of account options with no service fees, and access to over 30,000 ATMs without ATM fees. To join San Diego County Credit Union, become a member of the Financial Fitness Association.
33. Bellco Credit Union
Bellco Credit Union is a Denver-based credit union that opened its doors in 1936. You can join it even if you don’t live in Colorado as long as you donate at least $10 to the Bellco Foundation, pay a one-time $5 membership fee, and deposit at least $25 in a savings account.
Once you do, you’ll have access to several noteworthy products, like the Boost Interest Checking account, which offers a competitive interest rate, the Premier Money Market Account, and two, no-fee credit cards.
34. Bethpage Federal Credit Union
Bethpage Federal Credit Union was founded in 1941 and currently has over 30 branches across Long Island and New York City. It has a reputation for competitive rates on it money market accounts and certificates of deposit (CDs).
The credit union also offers three checking accounts, a few savings accounts, retirement planning services, IRAs, insurance, and more. You don’t have to live in New York to join if you open a $5 savings account. As a member, you may meet with credit union staff virtually and bank on the go with a handy mobile app.
35. First South Financial Credit Union
First South Financial Credit Union opened its doors in 1957 to serve those on the Millington base. Since then, it has become of the safest financial institutions in the U.S., as stated by independent rating agencies. While the credit union has locations throughout Tennessee and Mississippi, its online banking services make it a suitable option if you live elsewhere.
Like other credit unions, it offers a full suite of checking, savings, CDs, and IRA accounts. To join, become a member of the Courage Thru Cancer Association, which supports St. Jude Children’s Research Hospital.
36. Dow Credit Union
Dow Credit Union was founded in 1937 in Midland, Michigan. It provides numerous products, including checking and savings accounts, certificates of deposit (CDs), HSAs, deposit trust accounts, and loans.
Fortunately, you don’t have to work at Dow Chemical to take advantage of them. To join, make a $10 donation to the Dow Chemical Employees’ Credit Union Endowed Scholarship Fund.
37. Blue Federal Credit Union
Blue Federal Credit Union was chartered in 1951 as Warren Federal Credit Union. If you’re looking for a high-yield checking account, you’ll appreciate its Blue Extreme Checking Account with no minimum opening deposit or monthly service fees.
Other perks include a tiered membership rewards program and round-the-clock customer service. The easiest way to become a member is to donate $5 to the Blue Foundation and open a Membership Share Savings Account with $5.
38. Digital Federal Credit Union
Digital Federal Credit Union (DCU), based in Marlborough, Massachusetts, was established in 1979. Today, it is known for its comprehensive range of financial products that includes checking and savings accounts, auto loans, mortgages, personal loans, credit cards, and wealth management services.
Perhaps one of DCU’s standout features is its commitment to digital banking, offering robust online and mobile platforms that compete with larger, nationwide banks. This makes DCU a fitting choice for those who prefer online banking, no matter where they live.
Membership is open to those who are a part of participating organizations or live, work, worship, or attend school in eligible communities. If you don’t fit those criteria, you can still join by becoming a member of a participating nonprofit organization, such as Reach Out for Schools, which requires a nominal donation.
See also: Best Nationwide Credit Unions of 2023
Bottom Line
Not all credit unions are created equal. Some have strict membership criteria, while others are more flexible. Before you join a credit union (or several credit unions) on this list, be sure to consider numerous factors.
You’ll want to look at eligibility requirements, branch location, monthly maintenance fees, accounts offered, interest rates, mobile banking, digital banking, reputation, and customer service. Best of luck as you explore the best credit unions and search for the perfect credit union.
Frequently Asked Questions
Can civilians join Navy Federal Credit Union?
Yes, civilians can join the Navy Federal Credit Union (NFCU), the largest credit union in the U.S. However, this is limited to immediate family members of service members in all branches of the armed forces. This broad eligibility criteria is one of the reasons why NFCU has grown to be the largest credit union in the country.
Can anyone join American Airlines Credit Union?
No, not anyone can join the American Airlines Credit Union. Membership is limited to those who work in the air transportation industry, including airlines, airports, and related businesses, as well as their family members. While this broadens the scope beyond just American Airlines employees, it still doesn’t include everyone.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
Are you wondering how much money you should have saved by 25?
If so, this post is for you.
You need to learn how to save from a young age to be financially responsible and enjoy your life without stress.
In this post, I will outline the steps that I took to save a total of $25,000 by age 25. That ultimately led to becoming a millionaire well before most people earn that 7 figure status.
My goal is to help motivate and inspire you to save as much money as possible.
I believe that if everyone saves just 20% of their income each year, we could create massive waves of positive change across the world. So let’s get started!
How much money should you have saved by 25?
It’s never too late to start saving for your future.
By age 25, you should be working through paying off debt and starting to improve your savings rate.
Below are guidelines on how much money a 25-year old should have saved by the age of 25.
Save a Total of $20000
By 25, you should have saved $20000.
Given the average savings for this age is only $11,250 and the median savings is $3,240 (source), you will be ahead of the curve with those super savers in this age group. However, most twentysomethings fall in the middle of the bell curve and could barely afford a job loss or any major expense.
Save at Least 50% of your Annual Expenses
Another rule of thumb for a 25-year-old is to save 50% of your annual expenses.
Let’s say, you spend an average of $20000 a year on rent, food, insurance, discretionary spending, etc, then you would need to save at least $10000.
This method will make sure you have enough money saved based on your lifestyle.
How much money should you have saved by age 30 for retirement?
If you want to have a comfortable retirement, you should save as much money as you can by the age of 25 and 30.
Most people don’t save enough for retirement and twentysomething (age 20-29) only have average 401k balances of $10,500 (source).
That means at a retirement age of 65, your account balance would be $94,259 in a taxable 401k / IRA or $228,107 in a Roth 401k / Roth IRA. The assumptions include no additional contributions and an 8% rate of return.
To prepare for retirement, aim to save between $15000 and $20000 by age 25. To stay on track, use a benchmark to figure out how much you need to save each year and customize your target based on your individual circumstances.
If you’re not saving for retirement yet, start contributing to 401k plans and IRA accounts now so that you’ll have a solid foundation when it comes to savings.
Save at a Minimum of 10% of your Income
This needs to be non-negotiable at the age!
It is very easy to find ways to pay yourself first and save 10% of your income. While you may prefer to hit that happy hour or buy those designer shoes, you are better off trimming your spending and up your savings while you are young.
Then, each year increase your savings percentage by 1% until you reach the 20% threshold.
But, you don’t have to stop there! Many Gen Zs are wanting to explore why there are young and healthy and not be a slave to the workforce. That means you need to save more to make that happen.
What should your net worth be at 25?
Most people in their 20s are typically swaddled in debt, especially student loan debt.
Your goal is to have a positive net worth – even if by $100. That means your savings is greater than any debt you have.
Your goal is to double your liquid net worth quickly.
What is the average savings rate for people in their 20s?
Okay, let’s be real… okay?
Most young adults are spending more money than they are saving. That means each month their spending exceeds their income.
As such the statistics do not even include this age group.
how much should I have in savings at 25?
At 25, you should have about 3-6 months of living expenses saved up in the bank.
Additionally, it is important to start thinking about your long-term financial goals and make sure you are building a foundation that will support those goals.
What are the different savings goals that people in their 20s should have?
Saving for your future is important, and you need to make it a top priority.
There are many different savings benchmarks to choose from including:
Save an emergency fund of at least $2000.
Participate in one of our popular money saving challenges.
Start contributing to workplace retirement and save enough to get the company match.
Begin saving for those big purchases like a gently used car or downpayment for a house.
Set up a Roth IRA and start making contributions (even baby amounts count).
This will make sure you are on your way to becoming financially sound before you turn 30.
What are the list of ways to save money?
If you want to save money, there are a few things you can do.
Saving money in your 20s is the easiest age to save as you don’t have as many responsibilities and obligations as you will in the future.
Here is a list of the most common ways to save money:
1. Use Budget Percentages as a Guide
If you want to save money by 25, you’ll need to start by setting a budget and sticking to it. You can reach this goal by using different budgeting techniques, such as the 50/30/20 rule.
The 50/30/20 rule is a good place to start:
50% of your income going towards necessities (housing, food, utilities)
30% going towards discretionary expenses (groceries, entertainment, travel)
20% saved for emergencies
This will help you be consistent in your savings habits is key to saving money.
2. Track your spending
Tracking your spending is key to understanding where your money goes.
Save receipts from each purchase and go over them once a week to get a better understanding of your spending habits. This can help you see where you might be overspending and make improvements to your budgeting techniques.
Great apps to help you include Simplifi or Rocket Money.
2. Use AI Powered Savings Apps and put your savings on autopilot
With AI, you can save money by automating your savings process.
Setting up recurring transfers to automatically deposit money into your savings account means that you won’t have to worry about finances anymore.
The popular AI saving apps can also help you save for your retirement, as well as any financial goal you may have. Thus, reducing the amount of time spent on financial planning.
Top AI Savings Apps:
4. Use gamification to save
Gamification can help make saving fun and more likely to be kept up.
Gamification can help people save money by providing a tangible benefit to work towards and providing some valuable encouragement.
By using the method of gamification, you help others save money by motivating them to reach a goal while you work to complete the same goal.
For example, if you’re trying to save money for a trip, you could set up a game with friends (aka accountability partners) where you earn points every time you save money with the 100 envelope challenge. Those that save the goal amount get to go on the trip.
5. Collect your employer’s 401(k) match
If your employer matches your contributions to a 401(k) plan, it’s important to take advantage of the match.
A 401(k) match is a free money offer from your employer, so it’s worth maxing out your contributions in order to gain the most benefit.
Also as long as you meet the qualifications, you can also contribute post-tax dollars to a Roth IRA account. This is another great way to increase savings for retirement.
6. Delay buying a home
Buying a home is not easy, but it’s important to have goals and plan for what you want to achieve.
The down payment on a house is one of the most important factors when buying a home as such you may need to delay buying a home for as long as possible to save money.
Also, by delaying buying a home, you can save money by taking the time to research different neighborhoods, compare prices, and get pre-approved for a mortgage.
Not only will this save you money in the long run, but you will also have peace of mind knowing that your future home is exactly what you wanted.
7. Use Open banking to track your spending
If you’re interested in tracking your spending and saving money, you can use Open banking to do just that.
Open banking allows customers to access their bank account information and manage their finances through APIs.
This means you can see how much money you’ve spent and where your money is going, which can help you stay within your budget. Additionally, open banking tools can be used to better understand your bank’s products and services.
Many of the best budgeting apps, such as Quicken, allow you to utilize open banking data to help you organize and manage your money in one place.
8. Use credit cards sparingly
Even those Gen Z has the lowest credit card debt amount (source), it is still wise to make sure you are using credit cards appropriately.
Credit cards can be a great way to earn rewards or get cash back, but only if you use them sparingly and pay off your balance in full each month to avoid interest charges.
It’s also important to check your credit report regularly to make sure there are no outstanding debts you didn’t know about.
9. Use a budget
If you want to save money, using a budget is a great way to accomplish it.
By tracking your expenses and setting limits on how much you can spend each month, you can make sure that you are always saving money.
A budget is a great way to save money because it allows you to choose where you actually want to spend your money rather than figuring out where you spent your money afterward. It also allows you to optimize your spending so that you don’t waste money on unnecessary things.
10. Invest for the long term
Investing for the long term can be a great way to save money as you let your money grow instead of having to create new streams of income.
You can buy stocks in companies or ETFs and hold onto them for a long time, adding money to your account regularly. This strategy can help you take advantage of market volatility and make money over the long term.
You also need to make sure you’re properly investing your money in order to reach your savings goals.
What is the best advice to save money by 25?
To save money by 25, individuals should aim to save 10% of their income.
It may be difficult to save more than 10% of one’s income, but it is possible.
Saving money is essential for financial security at any age, and you can start by being determined and making sure you’re saving at least 10% of your gross salary.
Simple Tips to Save Money by 25
You should focus on spending as little as possible to save money, and set a fixed budget rather than relate your expenses to your income.
Be consistent in your savings and avoid impulsiveness to save money.
Save up on transport or any other thing you might feel is a luxury rather than a necessity.
What is the average savings rate for people in their 20s?
The average savings rate for people in their 20s is $11,250, so it’s important to start saving as soon as possible.
The median savings is $3,240, so most people in their 20s have modest savings.
Savings Tools to Build Cash Fund Savings
There are many ways to save money, so find what works best for you.
People in their 20s have a lot of opportunities to save money, so don’t wait to start!
You want a savings plan that matches your long-term financial goals!
Pay yourself first
In order to have a successful future, it is important to start saving from a young age. There are a few different ways to save money, and one of the most important is to pay yourself first.
This means putting your own money into your bank account before spending it on anything else.
This will help you build a strong foundation for your future, and you will be able to save more money
Save Consistently
Set aside money regularly so you have a stash of cash to use when you need it.
That means each you save $100 or each paycheck you save $250.
Whatever the amount, do it consistently.
Trim Spending
If you want to save more money each month or year, try cutting back on unnecessary expenses.
Don’t rely on your income to directly influence your costs – track how much you’re spending each month and try not to exceed your allotted amounts for each category.
Do not overspend just because there’s more money in your checking account – create healthy financial habits that will last long-term.
Use Cash Windfalls Strategically
These cash windfalls could be from bonuses, inheritances, or even some left hand itching lottery luck!
You want to save those cash windfalls and make a plan on how you will spend them.
Additionally, you may be able to use the money to pay down debt or buy a home. This is an important lesson to learn if you have unexpected money coming your way—you don’t have to spend it all!
Save Increases in Income
Dedicate additional income to savings so that you’re really putting your money where your mouth is.
You can increase your savings by dedicating a percentage of your income to savings. Dedicate 10% of your income to savings, for example, and then an extra 1% to save search year.
Savings will grow along with your income, and you will have more money to use for other needs.
Make Saving a Habit
Your saving habits will change as you reach your 20s and into your 30s.
However, it’s important to keep track of your progress and make saving part of your regular routine. There are many different ways to save and reach your goals, so find what works best for you.
FAQs
If you have a low income, there are still ways that you can save money.
Try to focus on paying off high-interest debt first and then saving three months of living expenses.
Another way to save money is by reducing unnecessary expenses with a 30 day spending freeze.
The answer to this question depends on your individual situation and goals. However, we can offer some general advice on saving habits for a 25 year old should include:
First, it’s important to set a budget and stick to it. This will help you track how much money you are spending each month, and allow you to make better decisions about where to cut back. Add 1% to your monthly savings each month until you reach your goal of $20000 saved.
You also need to be mindful of how you spend your money. Try not to rely too heavily on credit cards or other forms of debt, which can quickly add up over time. Instead, try investing in stocks or bonds instead – these tend to provide more reliable returns over time and offer less risk than some other investments.
Finally, don’t forget about savings! Whether it’s into a high-yield savings account or an emergency fund earmarked for unexpected expenses, putting away some extra cash will help ensure that you have enough resources when necessary.
How much should I have in my emergency fund by 25?
By 25, you should have saved at least $1000.
However, 2% of your annual salary is a better threshold.
By age 25, most people should be saving at least 5% of their income and contributing an additional 1% every year.
If you can’t save enough money to contribute at the recommended rates, don’t worry – you can still save for retirement by gradually increasing your savings rate.
Saving money can be difficult, but it’s important to focus on not spending every penny you earn.
One way to do this is to set aside a certain amount of money each month that you will not spend.
Another way to save money is to find ways to reduce your monthly expenses. For example, you can cook at home more often instead of eating out, or you can carpool with friends to save on gas.
If you’re determined and have the skills, you can quickly learn how to make money online for beginners.
Side hustles are the name of the game right now.
Stick around Money Bliss – we have plenty of ways to help you earn extra money.
If you want to pay off your debts more quickly, you should start by saving money each month.
You can use your savings to pay down your debts faster if you focus on high-interest debt first.
If you have three months’ worth of living expenses saved up in case of emergencies, that would also be a good place to start. Check out the best debt apps to help you.
First, you need to make sure you are financially stable in other areas. You are fully funding your retirement accounts and Health Savings account, you have stable housing.
Then, you can consider saving for a child’s education through a 529 plan.
Saving for a child’s education can be difficult and expensive, but it’s important to start early if you have the extra income to support it.
To save money for a vacation, start by setting a specific amount you want to save each month. Then, calculate how much money you need to save by the date of your dream vacation.
Set a date by which you want to have traveled and begin backing out the math needed for that trip! As long as you continue saving 20% of your income each month and stay within budget, travel is always possible!
How to Save for a retirement
To save for retirement, you should start by investing 5-15% of your paychecks into a tax-advantaged account.
You should also plan your retirement based on your income, age, and desired lifestyle. You can save for retirement by consistently increasing how much you put in retirement accounts.
Don’t forget to include that employer match!
What should I do if I don’t have enough saved by 25?
Don’t get down on yourself!
Start now!
Waiting will only exacerbate things.
There are many different savings techniques to try, so it’s important to find one that works for you:
Start by putting away $50 every month and then add more funds as needed.
Pick one of our money saving challenges.
Use cash or debit cards instead of credit cards.
Even if you don’t have any big expenses planned in the near future, saving is still important for long-term financial stability. You’ll be on your way to having enough money when you’re older!
What are the consequences of not saving by 25?
You have nothing to show for your hard-earned income.
That is the cold and honest truth. But, you are only 25 years old, so you have plenty of time to change your ways.
If you’re not saving by 25, you may have to make some sacrifices in order to reach your financial goals. You may need to cut back on your spending, take on a second job, or make other changes to your lifestyle.
However, if you’re willing to make these sacrifices, you can still reach your goals.
Savings Steps for your Twenty-Something Self
When it comes to your twenties, there are a lot of things you want to do and accomplish.
One of the most important things on that list should be saving money.
After all, the earlier you start saving, the more time your money has to grow.
Starting to save money from a young age can lead to a larger nest egg over time. Plus, if you start early, you can take advantage of compound interest, which will help your money grow faster.
An individual’s earnings and spending patterns are still in flux during their twenties, so there are many opportunities to save.
Also, you need to remember there is more to life than just saving money–put other goals on your list (such as starting a business) and figure out how much you need to save each month in order to reach your targets.
Now, learn how much should I have saved by 30.
Know someone else that needs this, too? Then, please share!!
When shopping for a new health insurance policy — or when your employer introduces a new health plan — you might wonder what certain health insurance terms mean.
In this guide, you’ll discover health insurance terminology for beginners and anyone who’s ever been confused about a policy, so you can make informed decisions.
Top Health Insurance Terms to Know
Discover the health insurance definitions that can help you better utilize health insurance for you and your family.
Accident-Only Policies
These policies pay only in cases that were due to an accident or injury.
Benefits
These are the health care services covered by the insurance plan for an individual. Your health benefits might also be called a “benefits package.”
Claim
An itemized bill that shows all of the services and procedures that were provided to the member.
Coinsurance
This refers to the percentage of the medical charge you must pay out of your own pocket after meeting your deductible. The rest will be paid by your health insurance company. If you have a 15% coinsurance plan, you would pay 15% of each medical bill (after paying the full deductible), and the insurer would cover the rest.
Contract
In most cases, this means the insurance policy, which is a contract between the insurance company and the policyholder.
Copayment
The amount you pay out of pocket when you receive medical care or a prescription drug. A copayment is typically paid in person at the doctor’s office.
Deductible
This refers to the amount you must pay out of pocket before your insurance starts paying some of your health care expenses. The deductible resets at the beginning of the year or when you enroll in a new health insurance plan.
If your deductible is $2,000, your health insurance plan won’t cover any services until you have paid $2,000 out of pocket for the year. Someone with a high deductible and lots of medical costs could consider getting help in the form of medical loans, which are personal loans for medical and dental procedures.
Disability Benefits
If you are unable to work because of an illness or injury, the insurance company pays for lost wages. You’ll receive a portion of your income until you are able to return to work. Each policy defines what constitutes a “disability,” so you’ll need to meet those requirements and submit medical paperwork before receiving payment.
Health Insurance
Health insurance terminology 101: This is a contract that requires your health insurer to pay some or all of your health care costs in exchange for a premium.
Health Maintenance Organization (HMO)
An HMO is a health plan that provides health care services to members through a network of doctors, hospitals, and other health care providers.
HMOs are popular alternatives to traditional health care plans because they usually have lower-cost premiums while still offering a variety of services.
Health Savings Account (HSA)
This is pretax money you set aside to pay for qualified medical expenses. You and your employer may contribute.
HSA funds roll over if you don’t spend them by the end of the year.
Indemnity Plan
Sometimes referred to as a fee-for-service plan, an indemnity plan allows you to go to any physician or provider you want, but requires that you pay for the services yourself and file claims in order to get reimbursed.
Mandated Benefits
This refers to the health care benefits that state or federal law say must be included in health care plans. Mandated health insurance benefit laws may require plans to cover substance abuse treatment or maternity services; cover treatment by providers like chiropractors, acupuncturists, and midwives; or include dependents and domestic partners.
Out-of-Pocket Maximum
This is the most you’ll pay for expenses covered by the plan in a calendar year. If you reach your deductible, insurance will begin paying some expenses covered by the plan. If you hit your out-of-pocket maximum, insurance will pay all expenses covered by the plan. (Monthly premiums don’t count toward your out-of-pocket maximum or deductible.)
Out-of-Network Services
This is when you seek out services from providers who aren’t in your HMO’s or PPO’s network. Usually, HMOs will only pay for care received within its network. If you’re in a PPO plan, you will have to pay more to receive services outside the PPO’s network.
Preexisting Condition
This health insurance term refers to a medical problem or illness you had before applying for health care coverage. If you have a preexisting condition, it’s a good idea to shop around and educate yourself when choosing an individual health plan.
Preferred Provider
This refers to a provider who has a contract with your health plan to provide services to you at a discount. If you have a favorite doctor, you might want to see if they are a preferred provider or “in network” for any new insurance plan.
When you’re looking to find a new physician, choosing a “preferred provider” found via the plan’s website will help keep medical costs down.
Your health insurance or plan may have preferred providers who are also “participating” providers. Participating providers can also have a contract in place with your health insurer, but you may have to pay more.
Preferred Provider Organization (PPO)
PPO plans provide more flexibility than HMOs when choosing a doctor or hospital. They also feature a provider network, but have fewer restrictions on seeing out-of-network providers.
PPO insurance will pay if you see a provider out of the network, though it may be at a lower rate.
PPO plans usually cost more than HMO plans.
Premium
This is the amount paid to the insurance company to obtain or maintain an insurance policy. Usually it’s a monthly fee.
Provider Network
This is a list of all the doctors, specialists, hospitals, and other providers who agree to provide medical care to the members of an HMO or PPO.
Waiting Period
This is the time an employer may make employees wait before they are eligible for coverage under the company’s insurance plan.
The Takeaway
Do you know your HMO from your PPO and HSA? Have you looked closely at copays, deductibles, and out-of-pocket maximums? Knowing health insurance terms can help you make an informed decision when looking at health insurance policies.
Speaking of insurance, check out a variety of insurance offerings at SoFi Protect, bringing you fast, easy, and reliable insurance.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances. SOPT0523017
Save more, spend smarter, and make your money go further
When it comes to saving for the future, the most commonly asked questions are “what funds should I choose for my 401(k) or IRA?” and “how much should I save per month?”. If you’re like most people, you likely zero your focus in on the former. However, in the grand scheme of things, shifting your focus to how much money you should be saving per month is the smarter, more efficient way to build your funds.
Every month, some money is added to (or subtracted from) your 401(k) or IRA due to factors beyond your control. Your stocks go up or down. A bond fund pays a dividend. In short, market stuff happens and with every month, you add some money to your account. If the amount of money you add is bigger than the effect of the market fluctuations, then your savings rate becomes significantly more important than your investment performance.
What is the savings rate?
Your savings rate is the amount of money you save every month expressed as a percentage or ratio of your overall (gross) income. The higher the savings rate, the more money you save per month. Your savings rate is often regarded as one of the most critical elements of your long-term financial planning. It’s also one of the few factors you can directly influence by making strategic choices. Ultimately, your personal savings rate can be one of the most telling percentages to account for when assessing your retirement savings success.
According to a 2005 Federal Reserve data report, the U.S. personal savings rate hovered between 2.5 and 3%. This rate is alarmingly low and indicates that it could take nearly 40 years of saving to equate one year of living savings in retirement. This past national average also signals back to the previous point— in 2005, more people were focused on building their retirement accounts than actually stashing away disposable income for future planning.
How to calculate your savings rate
Using the savings rate formula is a simple three-step process:
Add up net savings
This should include all non-retirement savings and your retirement savings for the year (including employer retirement contributions). This number could very well end up being negative if you had net debt rather than net savings for the allotted time period. For example, taking a withdrawal from any savings account or taking a loan from a savings account would be a reduction against anything you saved.
Calculate total income
Add your total take home pay plus any pre-tax savings (including employer contributions).
Divide total net savings by total income
Take your total net savings from Step 1 and divide it by your total income in Step 2. Multiply the outcome number by 100 to convert it to a percentage.
Example: You make $50,000 a year and you save $5,000 to your 401K. You had to withdraw $1,000 from your Roth IRA earlier in the year to pay for an unexpected expense but you added $500 back to your Roth IRA by the end of the year. Your employer also contributes $2,500 to your 401K for you.
Your net savings is:
$5000-1000+500+2500 = $7,000
Your total income is:
$50000+5000+2500 = $57,500
Your Savings Rate is:
$7000/57500 = 0.1217
0.1217*100 = 12.17%
What influences the savings rate?
From the state of the economy and fluctuations in market interest to age and wealth, there are a number of different factors that directly influence the savings rate.
Economic factors, such as economic stability and personal earnings, are critical for the calculation of savings rates. Intervals of extreme economic volatility, such as recessions and global crises, typically lead to a rise in investment as consumers minimize their usual spending habits in order to brace for an unpredictable future. However, on the opposite end, periods of exponential economic growth can also build optimism and trust that stimulates a comparatively higher percentage of consumption.
Income and wealth significantly affect the savings rate because there is a positive correlation between the per capita gross domestic product (GDP) and savings. Generally speaking, low-income households tend to spend the majority of their income on everyday essentials and needs as opposed to wealthier people who can afford to stash away regular portions of their income toward saving for the future.
Shifts in market interest can also have an impact on the savings rate. Higher interest rates may lead to lower average spending and higher investment levels. This is a result of the substitution effect— being able to spend more in the future outweighs the revenue effect of retaining existing income earned from interest payments for most households.
Personal savings rate example
To give a more concrete understanding of personal savings rate, let’s use a real-life example to better illuminate the purpose and meaning of this percentage. Say there are two people who work at the same job with exactly the same pay. One saves 5% and earns 10% annual returns while the other saves 10% and earns 5% annual returns. Based on the personal savings rate calculation, it will take over 25 years for the employee with the 10% return to come out ahead.
There are two key lessons here you can take away. First: on your first day of work, immediately save 10% of your gross pay and keep doing so forever. Mathematically, if you are employed and working for 45 years starting at age 20 and you consistently stash away 10% of your income, you’ll end up with enough money to retire comfortably.
The second lesson: if you hit the middle of your career and are still making avoidable investment mistakes like market timing, day trading, and performance chasing, consider changing your strategy. It’s a much more worthwhile venture to learn how to diversify your portfolio and keep costs and risk as low as possible to properly build a financially stable future.
How to increase your savings rate
Bolstering your savings rate is primarily about strategic budgeting, but there are a number of different elements to consider when creating a plan to improve your personal savings rate. Use the tips below to get a head start on building your savings rate.
Tip #1: Cut your spending
It’s vital to examine your current budget and evaluate the areas in which you may be able to cut costs. Identifying these places where you can eliminate ensures that you have ample opportunity to dedicate more of your monthly income toward savings. Every dollar counts, so when going through your budget, be meticulous and intentional about any spending shifts to maximize your saving potential.
Tip #2: Increase your income
The best way to save more money is by making more money. Though that is far simpler said than done, there are a few easy ways you can increase your income without making any significant changes to your existing lifestyle.
Consider the following:
Tip #3: Automate your savings
Instead of depending on yourself to remember to stash away a certain amount of money toward your savings account, introduce yourself to automated saving. One of the simplest ways to do this is by setting up automatic recurring transfers. The moment you get paid, a specified amount of cash will transfer into your savings account, no manual switching needed.
What about investments?
How many people do you know who started saving for retirement at age 20 and haven’t been unemployed, or taken a 401(k) loan, or gone off to India in search of themselves, before they hit age 65? In their 2011 retirement confidence survey, the Employee Benefit Research Institute found that 70 percent of Americans believe they are “a little” or “a lot” behind schedule. The best thing we can do to increase our retirement nest egg is to (snooze alert) save more and spend less. In attempting to do so, many turn to making various investment choices.
Investment choices are undoubtedly important, especially once you’ve accumulated a sizable chunk of savings. It can be fun, scary, and mysterious, and with the chance of earning a huge amount of money if you play your cards right, investing is downright attractive. But it goes without saying that making money is a lot more alluring than saving money. And that’s exactly why it’s so important.
By focusing on bettering your personal savings rate, you’ll enjoy the long-term benefits without any risk or chance involved. By stashing away disposable income for future planning, you can effectively escape the game of chance and gain the assurance you need in growing your own savings on your own terms. Also, money makes money – the more invested, the more you will make.
The silver lining of saving more
Last question: is it better for your 401(k) balance to go up because you’re saving more or because your investments are performing well? Or does it matter?
It matters. Improving your balance by saving more is better. Once you retire, you’ll be using your savings to pay expenses. The lower your expenses before retirement, the easier it will be to cover them from your nest egg. And when your savings rate goes up, your expenses (as a percentage of your pay) have to go down, right? Or, you can just increase your savings rate each time you get a raise to cover the difference.
Maybe the secret of a comfortable retirement isn’t about savings rate or investment performance: it’s about redefining “comfortable.”
Matthew Amster-Burton is a personal finance columnist at Mint.com. Find him on Twitter @Mint_Mamster.
Save more, spend smarter, and make your money go further
Previous Post
Save on Parenthood: Skip These Baby Gear Money Traps
Save more, spend smarter, and make your money go further
When it comes to saving for the future, the most commonly asked questions are “what funds should I choose for my 401(k) or IRA?” and “how much should I save per month?”. If you’re like most people, you likely zero your focus in on the former. However, in the grand scheme of things, shifting your focus to how much money you should be saving per month is the smarter, more efficient way to build your funds.
Every month, some money is added to (or subtracted from) your 401(k) or IRA due to factors beyond your control. Your stocks go up or down. A bond fund pays a dividend. In short, market stuff happens and with every month, you add some money to your account. If the amount of money you add is bigger than the effect of the market fluctuations, then your savings rate becomes significantly more important than your investment performance.
What is the savings rate?
Your savings rate is the amount of money you save every month expressed as a percentage or ratio of your overall (gross) income. The higher the savings rate, the more money you save per month. Your savings rate is often regarded as one of the most critical elements of your long-term financial planning. It’s also one of the few factors you can directly influence by making strategic choices. Ultimately, your personal savings rate can be one of the most telling percentages to account for when assessing your retirement savings success.
According to a 2005 Federal Reserve data report, the U.S. personal savings rate hovered between 2.5 and 3%. This rate is alarmingly low and indicates that it could take nearly 40 years of saving to equate one year of living savings in retirement. This past national average also signals back to the previous point— in 2005, more people were focused on building their retirement accounts than actually stashing away disposable income for future planning.
How to calculate your savings rate
Using the savings rate formula is a simple three-step process:
Add up net savings
This should include all non-retirement savings and your retirement savings for the year (including employer retirement contributions). This number could very well end up being negative if you had net debt rather than net savings for the allotted time period. For example, taking a withdrawal from any savings account or taking a loan from a savings account would be a reduction against anything you saved.
Calculate total income
Add your total take home pay plus any pre-tax savings (including employer contributions).
Divide total net savings by total income
Take your total net savings from Step 1 and divide it by your total income in Step 2. Multiply the outcome number by 100 to convert it to a percentage.
Example: You make $50,000 a year and you save $5,000 to your 401K. You had to withdraw $1,000 from your Roth IRA earlier in the year to pay for an unexpected expense but you added $500 back to your Roth IRA by the end of the year. Your employer also contributes $2,500 to your 401K for you.
Your net savings is:
$5000-1000+500+2500 = $7,000
Your total income is:
$50000+5000+2500 = $57,500
Your Savings Rate is:
$7000/57500 = 0.1217
0.1217*100 = 12.17%
What influences the savings rate?
From the state of the economy and fluctuations in market interest to age and wealth, there are a number of different factors that directly influence the savings rate.
Economic factors, such as economic stability and personal earnings, are critical for the calculation of savings rates. Intervals of extreme economic volatility, such as recessions and global crises, typically lead to a rise in investment as consumers minimize their usual spending habits in order to brace for an unpredictable future. However, on the opposite end, periods of exponential economic growth can also build optimism and trust that stimulates a comparatively higher percentage of consumption.
Income and wealth significantly affect the savings rate because there is a positive correlation between the per capita gross domestic product (GDP) and savings. Generally speaking, low-income households tend to spend the majority of their income on everyday essentials and needs as opposed to wealthier people who can afford to stash away regular portions of their income toward saving for the future.
Shifts in market interest can also have an impact on the savings rate. Higher interest rates may lead to lower average spending and higher investment levels. This is a result of the substitution effect— being able to spend more in the future outweighs the revenue effect of retaining existing income earned from interest payments for most households.
Personal savings rate example
To give a more concrete understanding of personal savings rate, let’s use a real-life example to better illuminate the purpose and meaning of this percentage. Say there are two people who work at the same job with exactly the same pay. One saves 5% and earns 10% annual returns while the other saves 10% and earns 5% annual returns. Based on the personal savings rate calculation, it will take over 25 years for the employee with the 10% return to come out ahead.
There are two key lessons here you can take away. First: on your first day of work, immediately save 10% of your gross pay and keep doing so forever. Mathematically, if you are employed and working for 45 years starting at age 20 and you consistently stash away 10% of your income, you’ll end up with enough money to retire comfortably.
The second lesson: if you hit the middle of your career and are still making avoidable investment mistakes like market timing, day trading, and performance chasing, consider changing your strategy. It’s a much more worthwhile venture to learn how to diversify your portfolio and keep costs and risk as low as possible to properly build a financially stable future.
How to increase your savings rate
Bolstering your savings rate is primarily about strategic budgeting, but there are a number of different elements to consider when creating a plan to improve your personal savings rate. Use the tips below to get a head start on building your savings rate.
Tip #1: Cut your spending
It’s vital to examine your current budget and evaluate the areas in which you may be able to cut costs. Identifying these places where you can eliminate ensures that you have ample opportunity to dedicate more of your monthly income toward savings. Every dollar counts, so when going through your budget, be meticulous and intentional about any spending shifts to maximize your saving potential.
Tip #2: Increase your income
The best way to save more money is by making more money. Though that is far simpler said than done, there are a few easy ways you can increase your income without making any significant changes to your existing lifestyle.
Consider the following:
Tip #3: Automate your savings
Instead of depending on yourself to remember to stash away a certain amount of money toward your savings account, introduce yourself to automated saving. One of the simplest ways to do this is by setting up automatic recurring transfers. The moment you get paid, a specified amount of cash will transfer into your savings account, no manual switching needed.
What about investments?
How many people do you know who started saving for retirement at age 20 and haven’t been unemployed, or taken a 401(k) loan, or gone off to India in search of themselves, before they hit age 65? In their 2011 retirement confidence survey, the Employee Benefit Research Institute found that 70 percent of Americans believe they are “a little” or “a lot” behind schedule. The best thing we can do to increase our retirement nest egg is to (snooze alert) save more and spend less. In attempting to do so, many turn to making various investment choices.
Investment choices are undoubtedly important, especially once you’ve accumulated a sizable chunk of savings. It can be fun, scary, and mysterious, and with the chance of earning a huge amount of money if you play your cards right, investing is downright attractive. But it goes without saying that making money is a lot more alluring than saving money. And that’s exactly why it’s so important.
By focusing on bettering your personal savings rate, you’ll enjoy the long-term benefits without any risk or chance involved. By stashing away disposable income for future planning, you can effectively escape the game of chance and gain the assurance you need in growing your own savings on your own terms. Also, money makes money – the more invested, the more you will make.
The silver lining of saving more
Last question: is it better for your 401(k) balance to go up because you’re saving more or because your investments are performing well? Or does it matter?
It matters. Improving your balance by saving more is better. Once you retire, you’ll be using your savings to pay expenses. The lower your expenses before retirement, the easier it will be to cover them from your nest egg. And when your savings rate goes up, your expenses (as a percentage of your pay) have to go down, right? Or, you can just increase your savings rate each time you get a raise to cover the difference.
Maybe the secret of a comfortable retirement isn’t about savings rate or investment performance: it’s about redefining “comfortable.”
Matthew Amster-Burton is a personal finance columnist at Mint.com. Find him on Twitter @Mint_Mamster.
Save more, spend smarter, and make your money go further
Previous Post
Save on Parenthood: Skip These Baby Gear Money Traps