Once the idea of saving struck me, I made it my priority to pay off all bills and debts in time so that I would not have to incur any late payment fee. I still believe that penalty fee is a very small amount but when I add late fee in every month, I end up getting a figure that is no longer negligible.
One of the most important skills that people need to learn is how to save money. Unfortunately, far too many people are buried under a mountain of debt, and they often feel like they will never be able to climb out from under it. However, there is no need to despair if you are in debt.
From a spending strategy to a saving strategy, you know it takes a lot to be a financially secure person! As you get older, you realize that personal wealth and security are things that you need, but how can you get there from where you are right now? You may have debt, you may have payments to make, and you may have no idea what you should be doing.
One of the pillars of financial health is savings. Most financial experts preach having three to six months of expenses in your bank account. When you are in debt and scrambling to pay all of your bills each month, saving anything seems impossible. The first step in savings is accumulating a $1,000 emergency fund.
It is estimated that approximately 30 percent of Americans do not have enough money in their savings account to cover emergency expenses. One of the most important things you can do to prepare for a rainy day is to have an emergency fund with at least six months of income. Below are some of the reasons you need to have an emergency fund: