You don’t have the money to save? What this means is simply you are being too careless in keeping track of where the finances go and the problem isn’t big enough to make you care. By the time it is big enough, it will be like the ever-decreasing ozone layer and unable to switch back on track.
Americans have a tendency to put things off, which is why our national debt is so high, and also why our personal debt is so high. Did you know the average American owes nearly $16,000 in credit card debt? Imagine the interest consuming our wallets! In fact, take your percentage and figure out how much you will be paying in interest alone for the year. Wouldn’t that make a nice vacation?
Okay, so pay yourself a “designated” amount, pay to a charity (yes, it is a bill), pay your utiliities and designate the remainder into your emergency fund (hands off). By the way, an emergency is not having to purchase a pair of diamond encrusted shoes to match your handbag for the evening. An emergency is something that if not taken care of right away, all hell will break loose–like your passport is lost and you’re in another country. That’s an emergency! Or you’re at your kid’s recital and his pants unexpectedly rip up the middle. That would definitely be considered an emergency. You get the picture!
Even if you are able to only put $25 a month away, that is $300 a year you would have for an emergency, but we both know you could do more than that. Pretend the life of someone you love depends on it… because it just might.