Three Tips to Help You Save for the Future
American consumers are in a better position than they were at the height of the economic crisis in 2007, but we still have a long way to go. Only 64% of households have sufficient emergency funds to cover temporary crises like car repairs, medical bills, job loss or some other serious life change.
This lack of savings puts individuals at risk of financial ruin, but it also places the economy itself in jeopardy. Declines affecting one industry are bad news for the economy, but they don’t trigger a credit crunch without a number of other problems. Low rates of consumer savings and high lifestyle maintenance debt can make job loss a vicious cycle. Consumers with high debt loads find themselves unable to spend, which slows growth in the rest of the economy. This leads to job loss in other sectors, snowballing throughout the economy.
Savings and low debt represent a way to fight back against this cycle. Reducing debt and increasing savings provides a way for consumers to maintain their lifestyles through career setbacks, which prevents the worst parts of economic crisis. That’s right: You can save the day with your savings.
By making a commitment to spend less, save more and get out of debt, you can motivate yourself to do just that.
It’s easy to get discouraged when your goal is something abstract. “Savings” is hard to compare in your head to a new cellphone, game, or dinner out. That’s why it’s so important to make your goal something concrete. Document your goal so you’ll always have something to look at when you get discouraged.
There’s a rush of enthusiasm that comes from starting a new project. Take time each day to reflect on the progress you’ve made and the challenges you’ve overcome.
Day Air Credit Union is here to help you with your financial wellness goals! Whether you’re interested in creating an effective budget, improving your credit or getting out of debt, Day Air has the confidential financial counseling and debt management services to help you persevere.