Savings Day – Avoid These Common Mistakes

If you want to grow your savings account, learn to avoid some common mistakes.

According to Bankrate.com, people lose financial progress when making the following mistakes. The first is having too many goals. It’s overwhelming. So, start simple. Focus on 1 or 2 things for a month or quarter, like building your emergency fund or paying off a credit card. Once these are comfortably underway, add a new goal or two. You want to experience victory so you’ll be motivated for the long haul. Second, you can actually pay down debt too fast. Reducing debt is good, but you have to have money for unexpected expenses. A 2019 CreditCards.com survey showed that 1/3 of Americans carried a credit card balance due to unexpected emergencies. So begin saving in a specific account to cover at least one month of living expenses. Work that up to 3-6 months. Use an automatic transfer so you won’t be tempted to spend it. When emergencies arise, use those funds, then let the automatic deposits rebuild the account. A third problem is not planning for future expenses. You must budget for items like taxes, holidays, or a replacement vehicle. Estimate your yearly cost, then divide by 12 so you can make monthly deposits into specific accounts. Another mistake is allowing emotions to control investment decisions. Fear or overconfidence can wreak havoc with well-laid plains. “Commit to the Lord whatever you do, and he will establish your plans.” (Proverbs 16:3)

If you’re struggling with debt, I recommend Christian Credit Counselors. They’ll create a debt management plan that works for you. For more information call the Crown Helpline at: 800-722-1976 or visit online at crown.org/ccc.