Out with the old, in with the new. The same way we saved money in the 50s, is very different from how we should go about savings today. I mean, think about it, times are vastly different, right? What our grandparents and parents went through sadly doesn’t apply to us, but that’s ok life is all about innovation, am I right?
So what do we do now, since the traditional, put money under the mattress method is out? What is a more efficient way of going about our savings strategy?
A good starting place/recommendation is saving 3-6 months of your monthly expenses. The logic behind saving only 3-6 months of monthly expenses is because you want your dollars to have a job description, and protect you in the event of an emergency. The worst thing to happen is not to have access to the capital you need and utilize your CC adding to your debt/liabilities. Anything outside of that is pointless. Why? Because of inflation? Do you know what that is? Inflation is the decline of purchasing power of a given currency over time. In plain terms, inflation is when goods and services around us get more expensive while the value of the dollar stays the same. What’s does that look like? Remember growing up and you could buy a lot of stuff with a dollar? Bag of chips, soda, and gum? What does that same dollar today get you? Barely can even get one bag of chips right?
Saving too much or saving too little — having an efficient strategy and things to be mindful of when thinking about saving money
Concepts to understand:
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