Some Sage Tips on Saving for the Future
posted on 10 March 2012 | posted in
Business and Finance
The recent downturn of the economy proved to many individuals that financial security is not guaranteed. While we've never had so much information at our fingertips when it comes to investing - from pension annuity comparison sites to financial blogs, it's hard to know what to do. Like many individuals, I used to spend almost all of my money as soon as I got it. While I did not overextend my financial limitations by maxing out credit cards, I certainly did not keep a very high balance in my bank account. When the economy turned, and I lost my job, I began to realize that having a large savings account is a smart decision. At some point everyone will lose their job or come into a period of high costs, whether through medical conditions, lawsuits, or simply the need to buy a new home or car. These types of situations are almost impossible to handle if you do not have at least a decent amount of money saved up. Therefore, as soon as I got another job, I began to put at least half of the money I had left after basic expenses (food, rent, insurance) into my bank account. Every now and then I dip into that account for special occasions such as buying a new car, but I always make sure that there is at least a decent amount left in the account. This provides me with the mental and emotional security of knowing that if something goes wrong in my life I will have the financial ability to withstand that period until I get back on my feet.
Further Research: ca.gov | time.com | cnn.com | wisegeek.com
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