While it’s important
to pay your bills, it’s also wise to “pay yourself” — to contribute
to your savings accounts, even in uncertain times when you may be strapped
for cash. During tough financial times, you may believe you cannot pay
your bills and continue to put money into savings. However, try to follow
at least a few of these simple money-management tips that can help you
cut your expenses and put money aside for savings.
First, start
trimming your spending by following the suggestions on the page
called "SPENDING LESS: Good Ways to Get Started Cutting Back."
The link is on the right. Doing so, you should have more money available
to set aside for other needs. Beyond that, here are ways to start
saving more.
1. Have an emergency
savings account. This is an account you can tap if you lose your job
or have major, unforeseen expenses. Emergency savings will help ensure
that you don’t have to borrow from your retirement nest egg or take
out additional loans that would push you into debt.
A general rule of thumb is to have enough money in this “rainy day” fund equal to at least
two months of living expenses. If your employment outlook is especially uncertain, consider
setting aside enough to cover six or more months of anticipated expenses.
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