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How to get an edge against rising prices

FinanceInvesting
Rising prices cause everyday items to go up in value

Rising prices are a part of life and with the Save® Debit Invest card, maintaining your money’s purchasing power can be, too.

It looks like the US economy is on the road to recovery. A healthy economy is a good sign, but what does this mean? 

One word: inflation. 

Since the economy reopened, consumers haven’t shied away from spending. 

Demand for goods and services went up, but supply couldn’t quite keep up, which was one of the reasons why the price of just about everything rose. In fact, inflation, as measured by the CPI, rose 6.2% year-over-year this October

While such a strong rise in prices is scary, experts predict it will level out. The International Monetary Fund projects roughly a 2.25% annual rise in prices until 2026. This projection means that an item you buy today for $100 will cost $102.25 next year and increase a couple of dollars each year thereafter. The chart below from Statista shows International Monetary Fund’s predicted annual inflation in the U.S. from 2010 to 2020 with additional projections up to 2026.

Statistic: Projected annual inflation rate in the United States from 2010 to 2026* | Statista
Find more statistics at Statista

Moderate inflation of around 2% is considered normal and healthy for an economy. Even so, it hurts your purchasing power. As a small example of inflation in action, the cost of a movie ticket keeps increasing year after year.  In 2012, a ticket to see The Avengers cost $7.96. As of 2019, the cost had gone up to $9.16.  And in 2021, an AMC ticket locally costs $12.85.

When inflation rises, your money is losing its purchasing power. And since inflation is expected to continue going up over the next few years, how will your money keep up? 

Curb the effects of rising prices by getting your qualified spending matched with equivalent investments from Save.

To maintain your purchasing power, you can potentially: 

  1. Get a yearly salary increase
  2. Work more hours 
  3. Put your money in a savings account
  4. Maybe try your luck with crypto?
  5. Become an investor by using Save

Our choice? Become an investor by using Save

With Save, you don’t need to be an expert or have tons of disposable income to invest.

Save matches every qualified dollar you spend and invests it in the markets for you, with an average annual return of 2.96%** after fees. An experienced portfolio manager looks after your investments, ensuring they are diversified. 

If the experts are right and average annual inflation hovers around 2.25% in the next few years, the returns from Save’s investment matching have the potential to keep up with inflation.

Take the price of gas for example. 

If it costs you an average of $1,500 to fill up your tank this year, a 2.25% inflation will hike up that price to $1,533 next year. Using your Debit Invest card at the pump could ensure Save matches your $1,500 in gas and invests it. Assuming an annual rate of return of 2.96%**, net of fees, you could earn a $40.00 cash reward from your initial purchase, which could help offset the cost of the next year’s gas purchases and give you an edge against rising prices. 

*For each qualified spend using the Save Debit Invest card, Save buys a strategy-linked security whose investment value is equivalent to the dollar spent.

**Average annual returns are based on hypothetical back-tested performance in the Save Moderate Portfolio Strategy from 2006 to present. Hypothetical back-tested performance is no guarantee of future performance and actual results will vary. Returns are subject to change daily. Minimum return will always be at least 0%. All return figures shown are for informational purposes only and are not actual customer returns. The funding rates and specific calculations for the Premium and Core bundle returns are described in detail in the Hypothetical Back-test. For more detailed information please see Hypothetical Back-testing.

How to get even more money back from your Black Friday spending with Save

Finance
Savings tip: Use the Save Debit Invest card

Increase your Black Friday value by spending with Save®.

Thanksgiving weekend is traditionally associated with two things: stuffing yourself into a food coma and catching Black Friday deals. For many, Black Friday is the start of the holiday, gift-giving season.

To get even more back from your spending this Black Friday, utilize your Save® Debit Invest card to get equivalent portfolio investments from your qualified Black Friday spending. 

This Black Friday, use your Save® Debit Invest card.

How it works:

  1. For every $1 you spend, Save invests $1 on your behalf.*
  2. Your matched equivalent investments stay invested for a little more than a year.
  3. Then, once the investment matures, the returns from the investment (minus our fee) are deposited into your bank account as cash.

If you’ve been waiting to get your hands on the latest Dyson V11 Animal+ Cordless Stick Vacuum, you can buy it for $399.99 during Costco’s Black Friday sale, saving you about $180.

Perhaps you’ve been saving for the 65-inch Android Smart 4K TV. This Amazon Alexa-compatible smart TV offers all your favorite films, music shows, sporting events, and video apps in one place. At $299.99, it’s an item for your whole family to enjoy. 

When you use your Debit Invest Card for these purchases and they qualify, Save will invest $699.99 on your behalf in equivalent portfolio investments.

If you choose Save’s Moderate Portfolio Strategy, the average annual return is 2.96%**. In a little longer than 12-months’ time, assuming a 2.96% annual return is achieved, you will be paid a cashback return of about $20.72 into your Save account. 

With so many great deals, your spending soon adds up. A Spendmot report estimates “the average adult plans to spend $400 on Black Friday sales. Additionally, according to PwC, Americans expect to spend $1,300 during the full holiday season.”

If your holiday spending on your Save card is $1,300, then the potential return is about $38.48, assuming you selected Save Moderate Portfolio Strategy. With Save, there’s no cap on how much you can spend to earn equivalent matched investments.

By just using your Debit Invest card, you have the potential to boost the cash in your Save account by next Black Friday. This potential cashback offers you an even bigger discount.

Start spending with your Debit Invest card, join Save here.

Market-Savings-earning-potential-Black-Friday
Market-Savings-earning-potential-Black-Friday

Do you want to get ahead and boost your spending power by next Black Friday?

Save’s next product to launch is the Market Savings account. With this new account, the money you save will earn a market-linked return after a 12-month term. With average returns for the Premium account of 1.46%** and 1.03%** for the Core account, you have the potential to create even more wealth, just in time for all of your holiday spendings in 2022. Like the Debit Invest card, the Market Savings accounts are FDIC insured. 

Save expects their accounts’ returns to earn several multiples more than other high-yield interest savings accounts.

What will you do with your extra savings next Black Friday? Tell us in the comments below. We’d love to know.

*For each qualified spend using the Save Debit Invest card, Save buys a strategy-linked security whose investment value is equivalent to the dollar spent. 

**Average annual returns are based on hypothetical back-tested performance in the Save Moderate Portfolio Strategy from 2006 to present. Hypothetical back-tested performance is no guarantee of future performance and actual results will vary. Returns are subject to change daily. Minimum return will always be at least 0%. All return figures shown are for informational purposes only and are not actual customer returns. For more detailed information please see Hypothetical Back-testing.

7 simple ways to save money in your 20s

FinanceInvesting
Young man and woman speaking on how to save money

To successfully save money, you start with setting a goal and planning.

People in their 20s right now are two generations divided with the youngest Millennials and oldest Gen Zers, and while their financial goals are all different, accomplishing their goals is achieved by making—and sticking to—a plan. The tips below are compiled from credit card experts, how to save money gurus, and financial podcast hosts and could help in 20-somethings’ accomplishing their savings goals.

Have a budget, like the 50/30/20 rule

When considering a budget formula, Listen, Money Matters host Andrew Feibret suggests the 50/30/20 rule because it’s simple: 50% of your income goes to necessities like rent and utilities, 30% goes to wants like eating out and entertainment, and 20% goes to financial goals, including savings or paying off debt. Following a budget will allow you to make budgeting a habit, which is a healthy habit to have.

A bonus tip is to wait 24 hours before making online purchases. You can save items in your cart instead and if you remember the item after 24 hours, then go for it. If not, maybe the product wasn’t as vital for you as you originally thought.

Save money with the Save Debit Invest card
Qualified spending with your Save Debit Invest card is matched by Save for equivalent portfolio investments. Learn more here.

Use the Save Debit Invest card

Often, tips to save money include sacrifice. Don’t buy your latte from Starbucks. Don’t eat out at lunch. These sacrifices add up over time, which is helpful to save money, but the Save Debit Invest card can also help you earn investment returns with your everyday spending.

Let’s imagine each month you:

Name your savings accounts

“Most of our decisions and motivations are housed in our emotional brains, not in our rational brains. That’s why abstract concepts, such as ‘savings account’ or ‘retirement’ are not very inspiring,” said Certified Financial Planner Brad Klontz, Psy.D., founder of the Financial Psychology Institute, to Acorns.

Therefore, renaming your account from “Acct. 9601” to “Hawaii 2023” or “Other people’s weddings” will allow your emotional brains to respond. Additionally, it gives you a clear picture of how much you’ve saved for each goal.

Check your credit card statements

Each month, you pay off your credit card statements—ideally the full statement balance so you’re not racking up credit card interest. But do you check each purchase you made during that statement period? Doing this will keep your mind fresh to any monthly subscriptions you have and can keep you accountable for how you’re spending your money.

Get rid of your car payment

Did you know most cars are depreciating assets? Bobby Hoyt, finance blogger behind Millennial Money Man, suggests instead to find an affordable used car, pay for it in cash, and use the monthly payment you might have spent before to put toward your financial goals. According to LendingTree, on average, Americans’ car payments for new and used cars are $563 and $397, respectively, so save those monthly car payments. Bonus points if you revert the would-be cost of a car payment into an automatic monthly transfer from your checking to your savings account.

Negotiate your bills

Adulting will teach you certain things can be up for negotiation. Service providers like your cell phone or internet company, car insurance, etc. have several competitors trying to swipe you as their customer. Oftentimes, calling your providers to ask about promotions or discounts can sometimes knock off a hefty sum from the monthly bills, which, obviously you can put the money saved toward other expenses or your savings goals.

Identify your “baseline problems

“I think of personal finance like dieting,” Erin Lowry, author and founder of the Broke Millennial, told Forbes. “If you do a crash diet, you will lose a ton of weight and that is great but odds are, it is going to come back because you haven’t fixed the baseline problem.”

If you instead identify your baseline problems, you can better plan your strategy around maintaining your savings plan. Do you need to watch Sunday football at a bar? What if you invited your friends to your place to watch the game, instead, thus saving you from the bar tab? Is a manicure required for you to look presentable at work? Statista estimates the average cost of a nail salon manicure in America is $22.75, so imagine if you saved a portion of that by doing your own manicure at home, instead?

This is the first post in a four-part series on how to save money at certain ages. Return every 2 weeks for the following posts or follow Save on Twitter, LinkedIn, Facebook, or Instagram.

*Any investments that are made on your behalf will be charged a management fee of 0.59%, if there are returns. If your returns are less than 0.59%, there’s no fee. You can see more information about our fees by reading Save’s Terms & Conditions.

One simple way to ease inflation effects and maintain your lifestyle

FinanceInvesting
Ease the effects of inflation by using the Save Debit Invest card.

The cost of living is rising at an unprecedented rate thanks to inflation. 

The Federal Reserve aims to keep the inflation rate in the US at 2% a year. However, inflation is now at a 30-year high and rose up to 5.4% yearly pace in September.

When inflation is at 5.4%, it means average Americans’ spending will increase by $216 per month, which adds up to a $2,592 increase per year.

Here’s the math: The average cost of living in the US is just over $4,000 a month, depending on the state you live in. If the price of your basket of goods and services was $4,000 a year ago, it will now cost you $4,216 today for that same basket thanks to the 5.4% increase from inflation. Over a year, this adds up to $2,592.

Nobody is immune to inflation.

The website Market Wise states: “Broad shortages of labor and supplies are raising costs for companies and they are charging customers higher prices to maintain their profits. These shortages, in some cases, have gotten worse and there’s little end in sight.” 

The prices of necessities such as food, utilities, and gasoline are currently volatile.

With the cost of living rising, what can you do to protect your wealth without sacrificing your lifestyle?

There is one simple answer to ease inflation’s effects on your wealth and protect your standard of living.

Ease the effects of inflation by using the Save Debit Invest card.

Switch your spending to your Save Debit Invest card.

If you are already spending on average $4,216 a month using your Save Debit Invest card on qualifying transactions, $4,216 will be matched and invested into a diversified portfolio by Save on your behalf. Every* $1 you spend, Save invests $1 on your behalf for the next 12 months.

If you choose Save’s moderate investment profile and achieve the average annual return of 2.98%, after 12 months, your $4,216 spend will generate you a return of $125.**

While the average annual return for Save’s Moderate investment strategy is 2.98%, the actual monthly return achieved will fluctuate in line with the performance of your chosen investment strategy, so what you make could be higher or lower than this percentage.

Even though the average return is 2.98% for Save’s moderate investment strategy, this return would not entirely cover inflation at 5.4%. Nonetheless, it does help ease the financial burden inflation can cause. 

By using your Save Debit Invest card you are giving yourself a chance of making market-linked returns that could help reduce the impacts of inflation on your lifestyle.

Additionally, most debit cards don’t offer any cashback, and those that do usually have a spending cap, the Save Debit Invest card can help maximize your earning potential.

*Save matches signature debits, which include most transactions in which you sign for your purchase and purchases made online and through contactless spending. The payment transaction type (signature-based or other) is ultimately decided by the merchant and how the transaction is transmitted to Save at the time of processing. We reserve the right to determine if a transaction is considered qualified spending. For more detailed information, please see our FAQ on signature spending.

**Average annual returns are based on hypothetical back-tested performance in the Save Moderate Portfolio from 2006 to present. Hypothetical back-tested performance is no guarantee of future performance and actual results will vary. Returns are subject to change daily. The minimum return will always be at least 0%. The return figures shown are for informational purposes only and are not actual customer returns. For more detailed information please see Hypothetical Back-testing. For more detailed information, please see our Hypothetical Back-testing.

Is your debit card earning you money? It’s time it did.

FinanceInvesting
Use the Save Debit Invest card

Most debit cards don’t offer any cashback, and those that do usually have a spending cap. Maximize your earning potential with the Save Debit Invest Card.

Are you a debit or credit kind of shopper? 

In 2020, debit cards were the second most common payment method in the US

And there’s a reason they’re so popular: they’re a convenient and safe way to spend and budget your money. 

But your average debit card has one major downside.

It’s not earning you enough money. Most debit cards don’t offer any cashback, and those that do usually have a spending cap. 

Maximize your earning potential with the Save Debit Invest card. Save isn’t your ordinary debit card. It’s a way to earn more from the money you’re already spending.

Here’s how it works: 

  • For every $1 (of your own money) you spend on qualifying purchases using the Save Debit Invest Card, Save invests the equivalent of $1 on your behalf. 
  • The average annual returns are currently 2.96%*, which is more than most debit cards can offer. 
  • The money you spend stays invested for one year.
  • After a little more than a year, your investment returns (minus our fee) are deposited as cash into your account.  

There’s no cap on how much you can invest (spend), but there is a minimum monthly spend of $250 to qualify for investment matching. Here’s how a typical day’s spending can turn into an investment for you: 

Debit cards should earn you money off investments. The Save Debit Invest card does.
Debit cards should earn you money.

Morning

10 a.m. – After a refreshing morning run, you’re off to Whole Foods for your weekly grocery shopping. ($150 spent)

11 a.m. – Before you head home, you treat yourself to a coffee and a small breakfast power bowl from your local cafe. ($10 spent)

Afternoon

12 p.m. – You and the family head to the mall for back-to-school shopping. ($200 spent)

3 p.m. – Since no shopping trip is complete without a Target run, you drop by just to check out some back-to-school deals. Of course, leaving there empty-handed is next to impossible. ($50 spent)  

4:30 p.m. – On your way home, you make a quick pitstop to fill up your tank. ($40 spent) 

Evening 

6 p.m. – A perfect end to the day means grabbing a couple of pizzas from the local Dominos and heading home to enjoy some quality time with the family. ($30 spent)

That’s $480.00 spent and potentially matched by Save from a single day’s qualified purchases! 

With Save, you spend as you normally would while reaping the rewards of an investment. 

“I don’t really have time to look after these investments” 

Don’t worry about looking after your investments all on your own. You can keep track of their performance with the Save App, while our investment advisors manage all the work for you behind the scenes.

From now on, you can make every dollar you spend count. 

*Average annual returns are based on hypothetical back-tested performance. Hypothetical back-tested performance is no guarantee of future performance and actual results will vary. Returns are subject to change daily. The minimum return will always be at least 0%. The return figures shown are for informational purposes only and are not actual customer returns. For more detailed information please see Hypothetical Back-testing.

Save’s Director of Engineering highlights personal data security, system reliability

FinanceSecurity
Photo of director of engineering Sachin Kulkarni, lead of securing users' personal data.

Save has created pioneering technology and has an expert team to manage your personal data and financial interests.

Among the team is Sachin Kulkarni, Save’s Director of Engineering. His passion for information technology led him into academia where information retrieval and large high-dimensional data was the subject of his Ph.D. Sachin holds a patent for his innovative research at HP Labs, which is Hewlett Packard’s advanced research group.

Before joining Save, Sachin led the development of the North American energy trading systems Macquarie Global Services.

In today’s blog, Sachin highlights a few of the key features his team focuses on, including how our customers’ personal data is used, how we ensure system reliability, what improvements we’re rolling out to our customers in the future, and how we consider our customers’ opinions every step of the way in our development process.

How is my personal data used?

Sachin: To ensure the security and safety of your personal data, your information is only used to open the account and verify your identity with our third-party partners. We take our customers’ data very seriously, and we do not allow sharing it with anyone unless required. We use the latest layer of security to transport the data between the browser and our servers, and we use one of the strongest encryption certificates ensuring highly secure connections. Our focus on our customers’ personal data security is reflected in our system architecture.  We implement the highest standard of security to protect our systems and are constantly enhancing them.

How do you ensure system reliability?

Sachin: The three main pillars of our system design are security, reliability, and scalability. We believe in continuously enhancing our systems in these three areas to better serve our customers and protect their personal data. Our system architecture is headed by a retired NASA scientist and a team of highly experienced developers, who have always focused their careers on creating systems that are fail-safe and available to serve all the time.

What do you do to improve the app? What can customers expect in the near future?

Sachin: Whenever we work on our app, we go through a continuous feedback and development cycle. We take feedback from different sources and convert them into action items for our development team to ensure that the system continues to evolve.

Also, we look for any new features that will enhance the usability and usefulness of our app. We have utilized the services of Pinwheel to enable users to schedule direct deposits, which enable us to deposit money from your employer directly into your Save account. We incorporated Fiserv’s technology into our system to confirm the identity of the bank account that our customer links, thus enhancing account security and reducing the risk of fraud. We plan to provide customers functionality to do card-to-card payments, the ability to save money using our savings account, and the ability to open joint accounts along with other enhancements to the app.

How does the customer play a role in Save’s development?

Sachin: Our customer plays a direct role in evolving our systems. Every customer call we receive is taken seriously not only by our customer support team but also by our engineering team. We transform the feedback that we receive from our customers into tasks that our developers can execute and deliver in a very defined timeframe. We have a continuous pipeline where each customer ticket is evaluated and fed into the pipeline for the developers to implement. This is the best way for us to improve our systems and the app.

Spend to Invest

FinanceInvesting
Woman saving through Save investments

It’s super easy to spend money. Each month we need to buy groceries, put gas in the car and pay our rent, just to list a few things that we need to spend our money on. Then there are the things we would love to get with our money, like a dinner out, a new pair of sneakers, or even going on that much-needed vacation!

What you can buy with your money is endless, and that’s why it is so easy to spend it.

What’s not quite so easy is having some money left over to invest.

That’s why Save has got your back by matching your spending with equivalent investments when you use your Save Debit Invest Card.

You really can Spend to Invest!

Let’s learn how your spending is converted into an investment with your Save Debit Invest Card.

‘Spend to Invest’ in 10 simple steps

Step 1: Make a qualifying purchase.

You buy the family a $300 dinner at your favorite Italian restaurant using your Save Debit Invest Card.

Step 2: Get a Push Notification

After paying the bill, you receive a notification on your cell phone telling you that your $300 spend will be matched by an investment.

Step 3: Go to ‘Transactions’ in your Save app

You can take a look in your Save app to see the money you’ve spent on your Italian night out listed under ‘Transactions’.

The next day, you go to the grocery store and spend $200. Then, you pay for your car to be serviced, spending $400.  Then, you continue using your Save Debit Invest Card on each day’s spend thereafter. Each item of your spending that qualifies will be matched by an equivalent investment and listed under ‘Transactions’ of your Save app as ‘pending investments’.

Step 4: View your ‘Debit Invest Total’

By the end of the month, you have spent $5,000 on qualifying purchases, all using your Save Debit Invest Card.

The total value of your spending during a given month will be added to your ‘Debit Invest Total’ ready for investment.

Step 5: Your investment matching will be traded the following month

A few days after the start of the new month, the $5,000 you spent the previous month will be reflected as a ‘pending program’ in the Save app waiting to be invested.

Your ‘Pending program’ will be invested on the second Wednesday of the month. This date will be presented to you in your Save app so you can see when to expect your trade to take place.

Step 6: On the ‘Trade Date’ your spending is invested

On the second Wednesday, Save will make a $5,000 equivalent investment on your behalf in your chosen portfolio. The amount invested will match the amount shown in your ‘pending program’ of your app.

Step 7: Your Invested Program

Once your $5,000 in equivalent investments have been traded, they will appear as invested within the Save app’s My Investments page.

Step 8: You receive a trade confirmation

About a week after your $5,000 has been invested, you will receive a ‘trade confirm’ message from Apex. Apex is the custodian of your investment.

To view your trade confirmation, you can log in online at Save, Accounts > Documents > Trade Confirms.

Step 9: Time to watch your investment

Each day, the value of your investment returns will be updated in your Save app for you to see. Go to ‘My Investments’ and you see the prior month’s debit invest programs. You will see the return as a $ amount and a % performance.

Step 10: Receive your investment return

In 12-months’ time, your investment will mature. Any return (net of fees) will be deposited back to your Save Debit Invest cash account.

For example, if your $5,000 investment matures and the return is 3%* net of fees, $150 will be paid into your account.

These simple steps to investing are done for you.

All you have to do is enjoy spending with your Save Debit Invest Card knowing that each time you spend you are building your investment.

Apply today to “Spend to Invest.”

*Average annual returns are based on hypothetical back-tested performance. Hypothetical back-tested performance is no guarantee of future performance and actual results will vary. Returns are subject to change daily. Minimum return will always be at least 0%. All return figures shown are for informational purposes only and are not actual customer returns. For more detailed information please see Hypothetical Back-testing.


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