“40% of Americans have less than $300 in savings — a drop compared to the pre-pandemic figure of $400 in savings:”
One of the biggest mistakes we Americans are starting to trend is the failure to have an “emergency fund”. The article above shows a 25% decrease in actual values, but the shocker is than only 4 in 10 even have anything to fall back on in tough patches. And we all have seen a bumpy road on occasion, unless you are Prince Harry or something of the sort!!
So what are you going to do when a major appliance craps out? A refrigerator or a furnace in the home are NOT optional parts of our lives, these are ESSENTIALS. Are you prepared in the event the car has a sizeable breakdown?? Without the car, how will you get to work, the kids to and from school activities, the groceries????
It is adamant for those who wish to plan ahead that they make a savings account just for emergencies, Put aside a portion of EACH pay check until that account has a minimum of $1000 balance, [or more if possible] and then leave it rest there.
I recomemnd also if your autos are not new and/or under a warranty that you set aside a savings fund for maintenance so you will have those funds available in the event you need repairs, like when the tires need replaced [$800 on most], oil changes, front end alignments, etc. you will have those $$ ready to go. Set up a line item in the monthly budget to take care of your 2nd largest family investment. These practices will prevent you from having to suddenly max out a credit card, costing you massive interest debt if the account is not paid off in the first billing cycle, which typically would not be possible.
Just like the old BOY SCOUTS adage — “Always be prepared” or another–“Plan ahead for the best, but prepare for the worst” because “bovine excrement occurs”
OK, enough with all the “farmerisms”–I trust you can take something away from this article and begin a new habit of making a good preparedness plan based on your family’s situation.