When it comes to their financial behavior, Americans have good intentions but bad follow-through. In fact, 59 percent of Americans say they enjoy saving money, compared to 38 percent who say they enjoy spending it, according to a recent survey conducted by Gallup. However, how respondents view themselves and how they actually treat money can be different things.
Nearly 6 in 10 consumers surveyed in Bankrate’s “Money Pulse Survey” don’t have enough savings to cover an unexpected expense of $500 or $1,000. In order to cover a surprise bill, 20 percent would reduce their spending on other things and 32 percent would either charge the expense to a credit card or ask to borrow the money from friends or family.
Using credit cards for emergency expenses or asking loved ones to cover the cost can lead to financial and personal problems. Reducing spending is the better choice, especially since it can create a savings-centric habit that results in the growth of an emergency fund that can cover the next unexpected expense.
Restricting spending can be difficult, but identifying areas where you’re wasting money can make building an emergency savings much easier. Consider the following ways in which many consumers waste potentially thousands of dollars each year, money that could be more effectively used as an emergency fund.
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[See: Basic Money Lessons You (Probably) Missed in High School.]
[See: 8 Personal Finance Myths Money Experts Want to See Disappear.]
[Read: 8 Scary Financial Statistics — and How to Avoid Becoming One.]
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6 Ways You’re Wasting Up to $1,000 Per Year originally appeared on usnews.com