America is the wealthiest country in the world. And yet, by most surveys, well over half of us live paycheck to paycheck with no emergency savings. Go figure. And if you’re not prepared for life’s rainy days, you might get soaked. On this MoneyWise Live, we go to the dark side: what happens if you don’t save? So-called “emergencies” will always happen. The Air Conditioning goes out in your car or you lose your cell phone. If you really need these things and you’re not saving, you’ll have to borrow and here’s what could happen:
- You can always whip out the plastic and pay that way but soon enough, if you don’t change your ways, you’ll max out your card or cards. Then what?
- You might try pawning something. This is a quick and easy way to get your hands on some cash. Problem is, the interest rate is usually pretty high.
- Then, you pawn your car— so to speak. In desperation you take out a title loan. Miss a payment and you might discover something else missing your car because it’s been repossessed.
- Now you’re making a huge monthly payment to a title company so you can keep driving but then the alternator dies and have no cash so you decide to get a payday loan. Now you’re really in trouble and it’s costing you a fortune in interest.
Start saving today even if it’s just a few dollars every paycheck. It’s one habit you’ll never regret falling into.
Next, Rob and Steve answer these questions at 800-525-7000 or via email at Questions@MoneyWiseLive.org:
- What if you want to BE a Certified Kingdom Advisor?
- What is the 10% rule-of-thumb regarding auto insurance?
- If your husband, who passed away recently, had a 401(k) and an insurance policy, what should you do with the proceeds and when should you do it?
- If your expenses are exceeding your income, should you consider a Guaranteed Lifetime Benefit annuity?
- What should you do if your bank has stopped sending statements to you in the mail?
- If you're struggling with giving your estate to your heirs or giving it to the church, how should you come to a decision?
- If you're concerned about the future at your job and thinking about heading into a ministry track, would it be a good idea to pay your house off to reduce an overhead while changing careers?
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