💰 Preparing for the Unexpected (AARP Article)

[SpringIsHereVA]

FROM THE ARTICLE - SEE ARTICLE FOR MORE!!!

Understanding Emergency Savings and Why It Is Critical to Financial Well-Being.

By Manita Rao, AARP Public Policy Institute, Katie Fitzpatrick, University of Wisconsin–Madison & David John, AARP Public Policy Institute. Published November 08, 2024.

One of the most important indicators of financial well-being is having money set aside for an emergency, yet too few US households do. And while overall household economic instability has grown in recent decades, it remains more common among lower-income households that have witnessed higher levels of income volatility and unstable consumption. This has made it even harder for low- and moderate- income households from all racial and ethnic backgrounds to save for emergencies. Therefore, an important policy goal to improve household financial well-being and further equity is to make it easier for households to build emergency savings.

https://www.aarp.org/pri/topics/work-finances-retirement/financial-security-retirement/understanding...

[GAKKIEZ]

  There always seems to be an excuse for NOT saving (and learning what is an emergency to avoid dipping in to it).  I have to admit that it's difficult but it's a habit that needs to be instilled in all families.  

  I started an emergency fund shortly after my divorce (14 year marriage) as a single mother of 2.  I started with automatic savings deposit of $1.00 from every paycheck. I did gradually increase that amount over many years.  Today at 70, I still maintain a monthly deposit (pay myself) of $50.00 even though I'm on fixed income.  Sometimes it's hard, but my peace of mind is worth it!

[SpringIsHereVA]

Yes, I agree with you @GAKKIEZ - since retiring in 2020 (age 66 this year), it has been a CHALLENGE saving. Especially as every year since COVID hit in 2020 = everything seems expensive. But like you said, save something. Glad I do as my Old Lady (2006 Hyundai Elantra) is starting to need major stuff. Still CHEAPER to fix her rather than replace her.  👍

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[*** GAKKIEZ wrote: There always seems to be an excuse for NOT saving (and learning what is an emergency to avoid dipping in to it).  I have to admit that it's difficult but it's a habit that needs to be instilled in all families.  

  I started an emergency fund shortly after my divorce (14 year marriage) as a single mother of 2.  I started with automatic savings deposit of $1.00 from every paycheck. I did gradually increase that amount over many years.  Today at 70, I still maintain a monthly deposit (pay myself) of $50.00 even though I'm on fixed income.  Sometimes it's hard, but my peace of mind is worth it! ***]

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