6 strategies to grow your savings nest egg in Omaha

Whatever stage of life you’re in, it’s always important to save for emergencies and long-term goals such as retirement, buying a home or sending a child to college. Here in Omaha, and much of the Midwest, it’s possible to take advantage of our lower cost of living and put any additional dollars to good use.

1. Pay down high-interest debt

If you’re carrying credit card balances or other high-interest debt, make it a priority to pay off these accounts. High-interest debt is not only stressful to manage, but it also impedes your ability to save. Just think, if you didn’t have those monthly debt payments and interest charges, you could direct that money into your savings instead.

To reduce your high-interest debt, there are two popular debt repayment strategies to consider: the snowball and avalanche methods.

It’s also important to identify the reasons you got into debt, so you can make the changes needed to prevent it from happening again after you pay off your balances. 

2. Contribute to employer-sponsored retirement plans

Many employers offer a 401(k) savings plan where you can invest a percentage of your pre-tax income. Many employers will then match your contribution. If you don’t enroll in a 401(k), you’re leaving dollars on the table that could help you create significant funding for retirement. No matter what your age, the best time to start your 401(k) is right now.

3. Build an emergency fund

Let’s call it a financial first aid kit. If the car needs an emergency repair, if you wind up between jobs, your emergency fund can cover the costs. How much do you need? Most financial advisors recommend having at least 3-6 months of living expenses for a robust safety net. It can take time to save that much, but the feeling of having a well-stocked “rainy day” fund is worth it.

You can start small by setting up an automated transfer between your checking and savings accounts–weekly, bi-weekly or monthly, whatever works best for your budget. The right app can make these transfers even easier.

4. Use a high-yield deposit account

Once you have saved enough to meet the minimum balance requirements, get the most out of your dollars with a high-yield deposit account like a CD (certificate of deposit) or money market account. With these accounts, you can earn as much as 5.25%^[1]. Our options provide competitive rates, no risk of loss and guaranteed returns. Not sure which one is right for you? We’ll help you compare.

5. Stick with smart budgeting and saving habits

Now that you have some solid strategies for building your nest egg savings this year, make sure to keep up your budgeting and saving habits. This is the best way to stay on track with your long-term financial goals and avoid going into debt. 

There are a variety of budgeting techniques out there, but in its simplest form, a budget tracks the money coming in, subtracts your bills and fixed expenses, and allocates what’s left to discretionary spending and saving. Money Monitor can help you track your spending habits, manage your budget, create a debt repayment plan and more.

There are also ways to increase your thriftiness if needed. Maybe that means canceling a streaming service, changing where you shop or taking advantage of community discounts. For example, The Omaha Smart Card offers discounts on products and services from local businesses. And your Omaha Public Library card can get you into local attractions such as The Durham Museum, Fontenelle Forest, and more. 

6. Practice, practice, practice

Getting good at saving takes a little commitment to review your spending and adjust the dials as needed. Prices can go up and down, priorities can change, and each new phase of life will need some saving and budget revisions.

Saving is also just the beginning. Once you’ve taken the steps to grow your nest egg, be sure to protect these funds by wisely budgeting how and when this money will be used.

Articles contained in our news section are not intended to provide recommendations or specific advice. Consult with a professional when making financial decisions. Once published, articles are not updated; information may be outdated.
^[1]. See offer for full details.