When the economy went in the tank a few years back, a huge number of people quickly discovered that they were totally unprepared for just such an event. This really shouldn’t come as a big surprise, as it is believed that as many as 75% of Americans are currently living paycheck to paycheck.
Sure, we all know that we should have an emergency fund stacked away in a savings account, but how are we supposed to make that happen when we are barely getting by as is?
There are a few simple ways to start a savings account without making a huge dent in your current financial situation. Here are 3 common excuses people use to not save money.
I Can’t Put Away That Much
The general rule of thumb is that you should be putting away 10% of your income, but for many folks, that seems like a number that is just a little too rich for their tastes. Just because the rule of thumb is 10%, it doesn’t mean that you have to follow that exact figure.
You can start small by setting aside 1-5% of your income into an emergency savings account. Once you get in the habit of transferring that money over, you will want to start increasing that percentage the moment you see how quickly it all adds up.
I Don’t Have Time To Save
If you feel that you simply don’t have the time or resolve to consistently transfer a percentage of your earning to a savings account, then do the smart thing and automate it. Some employers who do direct deposit into your bank will give you the option of putting a percentage of your choosing into a savings account.
With so many deduction already coming off your paycheck, you won’t even notice one more being made. Better yet, you get a deduction that is actually in your favor. How cool is that?
I Don’t Have Any Extra Money To Put Away
Another excuse that people often make is that they don’t have enough disposable income to make saving worthwhile. If you fall into that category, why not take a moment to start recording every single penny that you spend in a single pay period.
How much of that money goes towards things like a $5 cup of coffee, premium cable channels you don’t watch, or a cell phone bill that has extras you never use? That is all wasted money that could be sitting in a savings account earning interest for you.
Once you have a decent amount saved up, you can then start looking at ways to invest that money in ways that will make you even more over the long haul. If you are at a loss as to what those options might be, schedule a free consultation with a financial expert who can show you some options that will help boost your bottom line.
Even with just 5% of your earnings stashed away, you will find that the amount of money you have in reserve grows at a rate you would never have expected.