SCORE Small Business Blog

Finance: How to Save in Tough Times
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Is it really important to have 3-6 months of personal cash in reserve for emergencies?

With an uncertain economy and rampant job losses as international competition increases, it has never been more important to have money set aside for an emergency such as a job loss or an unexpected, expensive illness. 

Americans are very bad savers and this is the reason that so many families are in financial extremis.

Now, with the prices of everything UP, it’s not easy to put a few dollars aside every month for a rainy day. But, I’ll bet you can find money to save if you’re willing to make the effort. Do you really know how you’re spending your hard-earned bucks? (Use our calculator to find out where your money is going.) Did you really need to eat out twice last month, buy that flat-screen television because your neighbor has one, or buy the most expensive pair of soccer shoes for your kid ??

It will be some time before the economy is back on a healthy track, and there will be other difficult times for us in the years ahead.

Please, consider yourself warned…START SAVING NOW!

Use our special calculator to figure out much money you should set aside each month to reach your emergency budget goal.

-Daria Dolan, guest blogger

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Discussion (1) Comment

  1. I totally agree with keeping track of your daily expenses and needing to save today! That’s why I created a unique journal known as the Spending Journal that will soon be available on the website above. It has helped me to know where my money is going AND what the balance is in my checking account to avoid OD fees (you learn from experience). Great article post!

 

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