Save And Sound: Why It's Time To Start Setting Aside Money

Sixty percent. That is the number that haunts the masses, the percentage that is the harsh reality when it comes to saving money. That percentage is the number of people who have one thousand dollars or less in a savings account, suggesting that more than half of the population in the United States is one roof leak, blown furnace or pool liner rip away from having to borrow money because they simply don’t have money set aside for those unexpected expenses life can throw your way. What’s even more troubling is that 30 percent, roughly, have not dollar one in their savings account, meaning they’re in even more trouble should something of any sort of serious nature happen, whether that’s medical bills, student loans or anything else that comes up that you’d like to take care with your own money. So how exactly did the statistic materialize into reality? Well, the easiest answer is the one that you can see when you think long and hard about the basic principles of saving money. The first place you can look, rock you can overturn is figuring out two things: do you have a budget and if so do you follow it? Following a budget means you understand that you’re living within your means and spending less than you make. As rudimentary as that sounds, you’d be surprised how many people can’t follow that rule. Well, after looking at that 60% figure, maybe you’re not so surprised. The trick is pairing down the budget to the point that you’re taking in the essentials that you need to spend money on food, rent, transportation, and then figuring out what you don’t need and cutting it out of that said budget. That goes for the items that you don’t need and the ones that you haven’t thought of, but still should be accounted for (such as clothing, eating out at restaurants, cigarettes, coffee and anything else that is incidental). As far as the ones you know about, you could consider cable, your phone, and other services or goods that you don’t necessarily have to have (at least in droves or bunches). If you’re one of the many that haven’t been able to save money, don’t feel bad. You’re obviously not alone, but that doesn’t mean you have to roll over and accept your role as just another statistic. You can’t overlook the obvious when it comes to saving money: start cutting, and you’ll start saving.