See How You Can Save Funds That Will Be Useful During Emergencies
When you start to think of the effort that a lot of people put into their daily work, and the amount they save from it after receiving a paycheck and settling their expenses, you will realize that it really doesn’t equal out. In the present economy, a lot of people are still struggling and trying to make ends meet without a paycheck, all of this amidst the longest government shutdown ever in history.
The implication of this is that almost everybody in the labor force especially federal employees and contract workers are seriously digging into retirement savings. Others are filing for unemployment in a bid to get a job with a better paying offer. A lot of people work multiple jobs, and even at this, they still do not get to meet their mortgage payments. As a matter of fact, most people are fighting for every last penny with a lot of efforts, some cannot even afford to fall ill or miss a pay period due to any reason.
It gets as bad as just 40% of Americans being able to cover for a thousand dollars’ expense that could be in the form of a serious condition to their car or a delicate medical condition. Unfortunately, these are the same people talked about in the paragraph above, who spend every day working and saving all year. This means that a lot of them are unfortunately one terrible situation from being neck deep into debt. In situations like this, many would tend to put all of these expenses on their credit card or take a loan from lenders.
Nevertheless, there are ways to stay afloat in the event of situations like this, and it should be noted that even a very small amount of money saved can do a lot in the face of emergencies aforementioned. This would also help an individual reduce the chances of being indebted or stacking up overdraft fees from financial bodies. Saving should also be seen as a precautionary measure or an umbrella that keeps an individual protected in spontaneous and unexpected situations. So it is imperative to be well prepared so as not to be caught off balance if such a situation arises.
Economist and expert in finances have been able to provide ways in which money can be saved such that in the event of an emergency a lot can be averted.
Automating Your Savings
Erin Lowry thinks the best way to go about saving money is to automate savings in such a way that a particular amount of money is directed into the savings account at regular intervals most preferably monthly. Sometimes, naming the account an “emergency savings” can also help you keep your mind off the amount of money in the account, hence reminding you why you should keep saving money there regularly. Not to worry, you will be able to change your account name with many banks saving the account, and you should always try renaming it from a generic name when you can.
Using A Separate Bank For Saving
Another important way to go about saving is, having an entirely separate bank aside from the one you regularly use, for this purpose. This will help you reduce the temptation of trying to remove the money or transfer some of the funds into your main account. A major advantage of having a separate bank is that the transfer of funds will most likely take days when it is moved between two banks rather than within a bank. This means that the likelihood of the funds being available for you when you need an emergency payment will be limited, hence discouraging you from making the withdrawals.
Using Online Banking
An interesting saving technique to be utilized is saving the money in an online bank such not readily available when needed, and which offers more interest than other savings method. The account can also be streamlined in such a way that the money can only be withdrawn at particular times or on special occasions.
It is important that you do not have to give a lot of thought into the amount that you have to save. Even if you are not able to save enough, you shouldn’t be bothered or overwhelmed. Just make sure that the inflow of money is as constant as possible, and that you are very true to the cause.
The real idea behind saving is how much you can eventually come up with when the funds are needed, other than how much money you can put into the account at a particular time. You also have to be inspired to save for a very long period, because that is only when you can benefit substantially for the funds when they are needed.
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