This post is brought to you by America Saves, a campaign managed by the nonprofit Consumer Federation of America, which motivates, encourages, and supports low- to moderate-income households to save money, reduce debt, and build wealth. Celebrate America Saves Week, February 25 – March 2, 2019. Set a Goal. Make a Plan. Save Automatically.

It’s easy to postpone building your nest egg for a later day, but a solid savings plan is key to success. By following some basic guidelines, you’re more likely to achieve financial security.

Pay yourself first

Use automated transfers to get in the habit of saving. Money will be transferred from your account without you seeing it, which makes you less likely to miss it. You can easily set up automatic transfers from one account to another through CU Online banking.  Once you log into your accounts online, go to Transfers, and set a recurring (every week, month, etc) transfer for the amount you want to save each time.

Save 10% of your paycheck

The general rule of thumb is to save about 10% of each paycheck. If that seems too high, try 5% and work your way up to saving 10% of your earnings. Add 1% every year you get a raise until you reach 10%.

Know yourself

Examine your goals to determine which savings plan will work best for you. For example, don’t invest all your money in an aggressive stock or mutual fund if you’re conservative with your money. If you’re saving for retirement, select a plan that will fit your financial needs down the road.

Realize that age matters

Always take into consideration how much time you have to save for your goal. If you are a recent college graduate, you have several decades to ride out the highs and lows of the market and can take advantage of more high-risk investments. If you’re only a few years from retirement, less risky investments are a better option.

See the benefit of compound interest

The simplest way you can invest your money is to leave it alone and let it “compound” over time. You earn interest not only on what you save, but also on the dividends generated. The earlier and more you save, the more your money will grow.

Use dollar-cost averaging

This is the process of routinely investing a set amount of money over time, rather than all in one lump sum. It’s a convenient savings method, particularly for beginning investors. For example, each month transfer $25 or $50 from your checking account directly into an investment vehicle such as a mutual fund or brokerage account. You reduce your overall risk from market fluctuations because your money buys more shares when the price of a share is down, and your money buys fewer shares when the price of a share is up. Bottom line: You’ve reduced your investment risk.

Use the Rule of 72

To figure out how long it will take for your investment to double with compound interest, use this rule: Divide 72 by the interest rate you expect to receive on an investment. For example, if your investment earns 4% interest, your money will double in 18 years (72 divided by 4 is 18).

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