When you have a family, it seems like there is never enough money to go around and saving money frequently gets pushed aside. However, saving money can help stabilize your family’s financial life.
Saving is putting money aside for future use and requires discipline and, at times, denial. Therefore, it’s important to discuss the importance of saving with the whole family. Generally, people save with a goal in mind. Do you have an emergency fund? Do you need a new car? Would you like to take a family vacation?
If you do not have an emergency fund, establishing one should be your first goal. Life happens and you never know when a family member or pet might get sick or have an accident. Having money set aside in case of an emergency helps you avoid building debt if a crisis occurs.
How much money should be in your emergency fund depends on your family size, income, spending habits, and job security. It is recommended, if possible, to have three months of income in your emergency fund. Saving three months of income might seem impossible, but how much you save is less important than how often you save. Small, but consistent, savings add up over a period of time.
Once you have your emergency fund established you can start saving for other needs or wants!
For saving tips visit America Saves’ 54 Ways to Save Money.
Guest Blog Post by Sarah M. Ellis, UF/IFAS Extension Citrus County