So Many Shoes, So Little Money – Blog

Size Matters

April 6th, 2009

In your bank account – how big is yours?

Actress/model/waitress. Writer/Waiter. Investment banker/Dog walker. No matter how you slash it, finding a job in this economy is difficult. That’s why savings matter. When times are good, it is so easy to spend a little here, spend a little there – after all what’s a $20 drink between friends. When times are bad, those carefree habits can hurt. Suddenly you find your cushion – or complete lack of one – stressed to the limits. That’s why it is so important to save. You should save when times are good and it is relatively painless. You should also try to save when times are bad and it hurts.

How much should have in savings? Three months worth of living expenses is the minimum. That means enough to cover the things that really matter, for example your rent, loan payments, groceries, utilities. Six months would be better. As we have seen in this economy it can take at least that long – if not longer to find another position.

Some cuts are easy: did you go out to lunch today? That money could have been put in the bank. Did that sweater set, the one on sale, the one that makes your cropped pants perfectly perfect, cause spontaneous credit card use? That too, could have gone in the bank. Did you have more than one or two drinks when you were out this weekend? You get the idea.

If you are already way past those kinds of cuts you’ll have to dig deeper. That may mean canceling your land line and relying on your cell. Or canceling cable and relying on network TV. Hard times call for hard choices. Finding a way to live within your means can be incredibly challenging – but it is worth it.

So next time someone asks, “does size matter”, you’ll be able to answer yes with a smile and cash cushion.

Filed under: Bank Accounts

Tags: saving