Did you know that research has shown that having at least $2,000 in emergency savings is linked to a 21% higher financial well-being score?
One of the hidden benefits of having an emergency savings is that it increases time and productivity. People without emergency savings reportedly spend about 6 hours distracted by financial stress and spend nearly double the time, about 7 hrs/week, managing their finances.
Here are 3 simple habits that can boost your financial security:
- Pay down high interest debt, such as credit cards. Call your credit card company to renegotiate the interest rate or consider doing a 0% APY balance transfer to another credit card.
- Employer match. This is free money. Make sure you are contributing to your company retirement plan at least up to the match.
- Build emergency savings. We recommend having 3-6 months worth of livings expenses saved for an emergency. If you do not have any savings, then start with a smaller goal of saving $2,000. And then go from there!
Source: Vanguard