Posted by Nasdaq on October 5, 2014 by Motley Fool
Addressing the issue of saving money is the most fundamental, yet neglected, aspect of personal finance in the U.S. today. According to a 2012 survey by Credit Donkey, almost 50 percent of Americans don’t have more than $500 in their emergency savings accounts , which not only puts a kink in savers’ finances in the event of an unforeseen expense, but also creates undue stress for failing to prepare a safety net adequately.
So, in our latest Money Mistakes series, we highlight the top 10 money mistakes Americans make when it comes to saving money.
1. Not budgeting
There are a number of philosophies on the best approach to take when budgeting your money; but at times, the thought of sitting down with statements, bills, and an expense sheet is just too stressful. This mind-set is an easy trap to fall victim to, but is one of the worst money mistakes to make if you want to grow your savings fund.
Hope A. Rising of Clearwater, Fla., learned this lesson the hard way. “Rather than make savings a part of my life I ‘lived for the moment’ and now have virtually no savings for emergencies,” Rising said. “For example, my car recently broke down and I had to borrow money to have it fixed, rather than just being able to take the money out of the bank.”