Money Matters: How to Prevent Top 5 Financial Regrets, Inadequately Saving #2
This post is from our friends at Learnvest.com and offers a great deal of information on how to avoid the top 5 Financial Regrets. This week, We focus on Inadequately Saving. Last week, we examined Habitually Overspending. Over the next several weeks, we will take a close look at all 5 Top Financial Regrets.
A recent survey from the National Foundation for Credit Counseling (NFCC) listed the following as the top five financial actions–or inactions:
- Habitually overspending
- Inadequately saving
- Buying a house
- Not buying a house
- Not saving enough for retirement
When reading through these regrets and solutions, make sure to keep in mind what’s right for you in your situation. People are different.
2. Inadequately Saving
It’s easy to let savings take a backseat to bills and–let’s be honest–the occasional night out. But a savings account is a lot like an umbrella: When you need it, you’ll be so glad it’s there. We recommend your emergency fund consist of the equivalent of at least six months of net income. (More on exactly how you should create and use an emergency fund here.)
How to Keep It From Happening: To save effectively, you need to create a budget, keep track of your expenses, have a target savings goal and work toward it. Fortunately, we can help you with all of these. Use the LearnVest My Money Center to set your budget. We recommend setting your budget up according to the 50/20/30 rule (which you can learn more about here).
If you want to be walked through setting up financial savings goals, take our free, two-week Take Control Bootcamp. If you’re looking for a little more money to send to savings, our free Cut Your Costs Bootcamp will help you shrink your bills so you can devote more money to your savings.
- Consumers regret not saving (bankrate.com)