I love statistics. Numbers help me to visualize abstract concepts. So when a recent workshop presenter started with a couple savings stats, I perked right up. 1 out of 4 Americans do not have $100 in savings for an emergency. Almost 47% of Americans could not access $800 in a hurry. When it comes to savings, the picture is quite murky.
The lack of savings sends many to credit cards when life throws financial curve balls. We want you out of debt, but the path between start to finish is rarely a straight line. You’ve heard the savings guidelines – anywhere from 6 to 18 months of expenses. Have you added up your monthly expenses lately? Any multiple of that total can cause heart palpitations; especially for those starting below $100.
The journey of 1000 miles begins with a single step.
Start by establishing your Mad Money Fund. Save at least $1000 in a bank account with limited access. Online banks work well as long as you decline checks, debit cards, or any other immediate access tool. A three-day transfer window forces you to evaluate the emergency’s urgency.
With half of the country saving less then $800, $1000 may seem daunting. After you digest the state of your savings, use these Simple Strategies to Build Savings to build a Mad Money Fund so you can take that first step and be inspired!