Not Saving Could Cost You Money?

Building a savings cushion is a crucial thing to do.  My boss has taught me to keep “my age” in the bank. This is one of the best pieces of financial advice I have received! Get your age in the bank and don’t touch it unless it is an emergency.  Some people think “Why save, you can’t take it with you,” which is true, but if you don’t save you won’t go anywhere either. There are unexpected things that happen in our lives such as death, divorce, disability, illness, birth, home repairs, etc. which cost money and if you don’t have it then you are in trouble my friend.

The average single person makes around 46,000 a year and a dual earning household makes 67,000 a year.  A single person for example making $46,000 a year will pay on average (annually) $9000 for rent/mortgage, $4800 for food, $960 for gas and $3600 for a car payment.  Once you pay taxes you really only get $36,000 a year and with these expenses, it equals out to over 50% of your earnings.  These are just the necessities to live.  Once you calculate insurance, eating out, entertainment, household products, etc. there is not much left.  If you have an unexpected event, you will need that cushion.  Some people will just put on their credit card, but then that will end up costing you more money in the long run.  You cannot finance your way to being wealthy!! So start saving and manage your money.