Money mistake #5: Living paycheck to paycheck
According to Federal Reserve, the personal savings rate is 3.1%. This means that 4 to 10 American consumers are living paycheck to paycheck and an unexpected car’s repair or bill for medical services can turn into a financial disaster.
Financial specialists recommend saving three months’ worth of expenses into an account and use it as a buffer for emergencies. Having such a “slush fund” will prevent you from exceeding your checking account and going into overdraft.
