DENVER — Saving money doesn’t have to mean having less. Meritrust Credit Union said changing your mindset from traditional savings accounts to “freedom funds” can help motivate you to invest in the future.
The new approach focuses on opportunity rather than restrictions.
“When we reframe it in a freedom fund, what it does is it makes us change our mindset from something I have to give up to save, to actually something that I get to invest in my future and explore new opportunities,” Ashley Manning, AVP of financial well-being at Meritrust, said.
The best part of the freedom fund is tailoring to whatever needs or goals you have. It could be annual vacations to concerts or even simple things like covering grocery costs. It depends on your overall budget, but Meritrust said it’s all about starting small. Start with $200 to $500 annually and as you continue to hit different milestones, you can strive for having three to six months worth of expenses saved.
Financial experts also advise treating this account like a bill that benefits you rather than someone else.
“There's like this different emotional connection to savings and having to work hard and it's a chore to Freedom Fund where it's like exciting, it is opportunity based and so it just feels a lot better,” Manning said.
Denver7 is committed to making a difference in our community by standing up for what's right, listening, lending a helping hand and following through on promises. See that work in action, in the videos above.