BP’s Dollar Sense BROOKLYN-USA.ORG
BP Adams offers constituents tips
to jumpstart their saving habits
In a 2018 report issued by the
Federal Reserve, the central banking
system of the United States revealed
that 40 percent of Americans
could not afford to cover a
$400 emergency. This means that
four out of every ten of your neighbors
could be sent into a financial
tailspin by something as trivial as
an unexpected car repair. It’s often
unforeseen circumstances like
this that push the average person
towards carrying credit card balances,
having to borrow money,
or simply being unable to manage
the emergency at hand. This unfortunate
set of cascading financial
events can be prevented by doing
one simple thing: budgeting.
Many people are under the misconception
that you have to make
a lot of money before you can save
money, but that isn’t true. In fact,
we all know of people who make a
22 ONE BROOKLYN | FALL 2019
lot of money, but they squander it,
probably because they were never
taught good financial management.
And then there are those who make
minimum wage, but are still able
to consistently put “a little something”
aside for a rainy day.
What’s great is that it’s never too
late to learn and to start on the road to
healthy fi scal fi tness. Think of saving
money like going to the gym: no one
wants to do it, and at fi rst it’s painful
and the gains seem minimal. But
sticking with the regimen and covering
the fundamentals is key, and
as time goes on, the process becomes
more comfortable and the progress
more evident. Remember, the buff guy
at the gym probably wasn’t fi t on his
fi rst visit—he worked at it, and more
importantly, he stuck with it.
Learning to live within a set
budget is the first step in becoming
financially independent, and once
it’s mastered, more growth areas
related to finance can be unlocked
and explored. Here are some helpful
budgeting tips to live by:
• Track your expenditures to see
exactly where and to what purpose
your money is going
• Set realistic financial goals.
Looking to buy a home? Need a new
car? Want to start a retirement account?
These are measurable and
attainable goals. Don’t just want to
“be rich.”
• Open a savings account with a
bank that you trust, offering the highest
interest rate you can fi nd. The
interest allows your money to earn
money of its own, and every penny
counts. Albert Einstein once said,
“Compound interest is the eighth wonder
of the world. He who understands
it, earns it. He who doesn’t, pays it.”
• You might find it helpful to
open several savings accounts, using
each account to save for a specific
goal, such as an emergency
fund, a vacation, or a car.
• Pay yourself first. Because
you’ve earned a paycheck doesn’t
mean you need to spend every penny
of it. Put a percentage of it aside after
your expenditures are covered.
As your savings grows, it becomes
easier and easier to save.
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