TEMPLE, Texas — One of the most important aspects of finding your path to financial freedom, or at least stability, is to create a nest egg savings account that you can pull from in case of emergencies.
“An emergency fund cushions against surprise financial setbacks,” said Margarette Burnette with Nerdwallet, who touts an emergency fund calculator that’s easy to understand and implement.
Lourdes Zuniga, the Executive Director of Financial Health Pathways of Austin, said Texas ranks 43rd in financial literacy and would like to see that change.
“They say $400 is what you should have but I think it really depends on how much money you make, I mean the more money you make the more assets you have, right?” she said when asked how much money people should have in savings at any given time.
Zuniga did say that for some, that amount of money may not be an attainable goal and advised those, especially in low income situations, to have what makes them feel comfortable.
America Saves, a campaign managed by the nonprofit Consumer Federation of America, gave 54 different saving tips to help consumers get ahead, a few of them are as follows:
- An emergency fund is a must. While many places will tell you to have three times your income, America Saves recommends $500, a little more than Zuniga recommended but more doable.
- Establish your budget. Not all budgets are the same and so it’s important to know what you bring in. Tracking your spending and being in touch with every aspect is crucial.
- Envelope Budgeting System. If you have trouble…
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