[MUSIC PLAYING] Life is unpredictable. Whether it's sudden layoffs at work or a car that unexpectedly dies, you never know when you'll find yourself in a financial bind. Having savings to fall back on can mean the difference between a difficult situation and a catastrophe. That's why it's so important to have money saved that you can access in an emergency.
Experts suggest that you should have a savings equal to anywhere from three to six months worth of salary. It is also recommended that you should be depositing 10% of each paycheck into savings. Those recommendations may seem like a pretty tall order, but it's not as difficult as you might think to increase your savings. Here are a few tips to get you started.
Even if you can only save a few dollars a week, do it. You'd be surprised how quickly those dollars will add up. Don't throw money away. Over the course of the year, non-insufficient funds charges for overdrawing your checking account or paying a late fee on a bill you forgot to mail can really add up. If you can't put any money aside for a few weeks, don't get discouraged. Just put some aside when you can.
Only take money out of savings if you absolutely have to and then treat it like a loan. Set a deadline for when you'll pay yourself back. Set up an automatic payroll deduction, so the money is moved into savings before you ever touch it. By that same token, if you get a raise, rather than just spending it, increase the amount you're putting into savings. If you never see the money, you'll be less likely to miss it.
LGFCU is federally insured by the National Credit Union Administration and is an equal housing opportunity lender.
The situations described in this video are for informational purposes only and meant to provide examples of the products and services LGFCU offers to its members, which may be subject to approval. Contact a financial advisor or legal or tax professional for additional guidance.
The individuals presented in this video are members and employees of LGFCU and receive no added compensation for their appearance.
LGFCU is an equal housing opportunity lender and federally insured by NCUA.