Did you know this is “America Saves” week? You’re thinking, “Big deal”. Well, here’s a real eye-opener. If they had to, most Americans could only live on their savings for three months or less. And for more than a third, it’s only a month. Are you one of those?
What it really comes down to is this… If you had a financial emergency today… Would you have enough savings to cover it? If not, it could be devastating when there’s a financial emergency like losing a job or you’re faced with big home repairs.
Sometimes we don’t start out with a savings habit , because we don’t think it’ll make a difference. But those behind “America Saves” week believe when it comes to savings, starting small can add up big, whether it’s for a short-term emergency fund or a long-term retirement account.
The Consumer Federation of America’s Steve Brobeck says, “As that grows, you’ll realize you have the ability to save, and it will actually affect your spending habits, and you’ll end up saving more.”
It worked for the Sartin family of Tulsa. Last year we helped them save more when they started looking closely at what they spend their money on, like groceries and eating out.
Here’s what Tori Sartin said after several weeks of their new habits: ”Considering our savings was (gives the zero gesture and laughs), it was little because we’ve had to dig into it when emergencies come up . We are able to build it up.”
- Set aside your spare change. Just 50 cents a day adds up to almost 200 dollars by the end of the year.
- Bag the savings from brown-bag lunches. You’d be surprised how much you can save by not eating out every day.
- And use the plastic sparingly. To make sure you don’t spend more than you have.
Doesn’t sound like these tips would make much difference. But starting some small habits now can lead to bigger habits later on. And they all can pad your savings when that financial emergency pops up.
Now, that IS a big deal isn’t it?