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How to Transform Your Savings


Are You a Saver or Spender?
Before you answer that question, consider this situation: You just received a bonus at work or made $100 from a garage sale. What are your first thoughts? Do you save the money, or treat yourself to something extra?

Economists have an actual term for this. It’s called the Marginal Propensity to Save (MPS). The MPS is a measure of how much you save when you have additional discretionary income. For example, if your MPS is 0.50, then 50% of every extra dollar you make (discretionary income) is put toward savings. In order to make the most of your discretionary income and savings, your MPS should be as high as possible. This gives each extra dollar a purpose at the end of the month.

What’s Your Marginal Propensity to Save?
Let’s say your family has expenses of $3,500 each month and an income of $4,000. You have $500 of discretionary income that you can save. For any additional income above the $4,000 you already make, you have a choice: boost your savings or spend the extra money.

Making a conscious decision beforehand to save a portion of unexpected raises, bonuses, or money from side jobs can help you manage any extra money with a greater focus. Whether your goal is to save 50%, 75% or 100% of unexpected income, you can seriously impact your savings goals.

Knowledge is half the battle. When you realize the importance of proactively designating extra money toward savings, you’ll be prepared to put unexpected income to work—not be tempted to blow it frivolously.

Give Extra Income a Purpose
You can improve your financial outlook by strengthening your MPS. That means committing to save unexpected and discretionary income. Here are some tools to help you along the way.

Boost Your Retirement Savings
You can dramatically impact your retirement savings by designating any future raises toward your 403(b) account. Inform your business administrator that you would like to increase contributions the next time you receive an increase in pay.

Add More to an IRA
Did you know that your spouse can open an IRA through AGFinancial affiliated entity, AGFinancial? Even if you’ve maxed out your 403(b) contributions, an IRA is a great way to supplement your account and receive potential tax benefits.

Increase Your Investments
AGFinancial* offers highly competitive, fixed interest rates that are comparable to other similar investment options. And funds invested in AGFinancial are used to help build churches, so you’ll also be a part of something greater: building the Kingdom! Click here for more information.

Use Our Automatic Reminders
We know it’s tough to remember to increase your retirement contributions. Click here to sign up to receive occasional email reminders to increase your contributions to help reach your retirement savings goals.

At AGFinancial, we’re here to help you maximize your savings. Whether you’re looking for ways to increase your retirement account, leave a larger inheritance, or consolidate your investments, we have a solution to fit your needs. Contact us today for a personalized consultation.

Tim Fraticelli, Consultant
Retirement Planning

This is not an offering to sell securities referred to herein. The offering is made only by the Offering Circular which includes risk factors. The Offering Circular may be obtained by writing or calling AGFinancial or online at An investment in AGFinancial involves certain risks that other investment options may not have. Not all risks can be quantified or compared to other investment options. Investments are not available in Washington, D. C.
AGFinancial is an affiliated entity of AGFinancial.
Not FDIC or SIPC Insured. Not a Bank Deposit. No AGFinancial Guarantee.

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