Save More - Worry Less
Did you know that China residents save 40% of there income? Those of us in the United States save on average only 3% of our income, although this number has recently risen to 5% due to the recession. Believe it or not this fact has played a small role in our nations financial crisis. What do you think about this statistic? I find it somewhat saddening. We have become a nation in need of immediate gratification. I am not preaching, as I am guilty as well and I plan to increase my savings this year.
Increasing your savings is a worthy pursuit at any time. However, in this time of economic and career uncertainty having more money (cash) at your disposal could just buy you enough time if something unfortunate were to happen to your circumstances.
The Richest Man in Babylon by George S. Clason that lays out a very simple and straightforward plan to achieving financial security. The minimum goal that all people should strive for is to save 10% of their gross income. Yes gross. You may think that this in impossible but for most people but it is not. The key is to pay yourself first. This can be done either through some type of retirement plan through your employer or simply having an automatic withdrawal from your checking account going into a savings or money market account. If you do not feel you can save 10% then start with a smaller percentage or a dollar amount on a regular basis (weekly, bi-weekly or monthly). You will be very surprised how it will begin to add up and how you will want to increase the amount you contribute.
It is recommended by most financial experts that you have at least 3 to 6 months of your living expenses saved in a savings or money market account. Having this amount of money saved will decrease your stress with respect to unexpected expenses or even worse the loss of your job. As I said before, it buys you 3-6 months of time to get back on your feet. This is the first step to long-term financial security and an immediate stride towards peace of mind.
Don’t let yourself get into a situation where you have to look back and regret that you did not save more.
