Marion Syversen was in for this week’s Finance Is Fun continuing part 2 of the top 8 finance worries list.
Last week we discussed the 8th- lack of a financial plan, the 7th- volatile markets, the 6th- debt, and the 5th – housing costs.
The fourth most concerning financial worry is no emergency fund. If you take money for saving right out of your check – either automatically, or getting cash out of the bank to put in a safe place, before you pay your bills, and you make a discipline of it, you will have an emergency savings account. For EMERGENCIES. Like a fire extinguisher is for emergencies. A real emergency. Not, oh, that’s nice and it’s on sale. Not, well I want to get that thing and look at this account full of money. Emergency savings.
#3rd top financial worry is college- To some making a decision about where your precious baby will go to school based on money seems cold. But it’s not cold. It’s amazingly practical. State schools tend to be less expensive. Local colleges mean that you don’t have to pay for four years of room and board. Scholarships, a 529 college savings plan, working while in school are all ways to help make college costs less onerous.
#2 Planning for Retirement- About half of people over 55 have nothing saved for retirement. Starting late to save is better than not starting at all. But starting early, and having the awesomeness that is compound interest work for you is even better.
#1- SPENDING- The top worry according to this article that plaque people about money? Undisciplined spending. Feeling like they ‘need’ more and more stuff and things. Eating out many nights a week. Spending when they are tired, feeling out of sorts, or entitled.
If you work hard for your money, you should definitely be the boss of it. Take it by the throat and get out of it what YOU want. Security. Freedom. A future. It’s all in your hands.