Monday, February 27, 2012

Don't Touch My Nest Egg

I'm sure you've heard the term before but how many of us really have them?  Most people are worried about having enough money for their current expenses and can't imagine having enough money to save.  But it's important to have some sort of emergency fund, not only will it alleviate stress but it may also come in handy.

I'm working on creating a nest egg for myself.  It's not easy for a freelancer to plan ahead but I know it's important so I make it a priority.  Three reasons you should consider creating a nest egg of your own:

1. Alleviate Stress.
According to several studies the number one source of stress is finances.  So why not work to get rid of some of the worry by stacking money.  Knowing that you have money set aside that you don't touch will put your mind at ease.  Maybe you just started a new job that you think is great.  But what if it's not?  An emergency fund will keep you from feeling stuck there.  Or maybe you earn plenty of money and you think you don't need to save.  But what if you're wrong?  A nest egg will help make the 'what if's' in life a little easier to handle.

2. Emergencies Happen.
Life is unpredictable.  It's beautiful that way.  I love not knowing what's going to happen next because it opens up so many possibilities.   But with those possibilities come risks.  Since we can't predict the future, the best we can do is be prepared for it.  Maybe it's a leak in your house or a emergency medical bill.  It's good to have money set aside in case something goes drastically wrong.  Most likely, it won't but you never know.  And I'm big on not worrying about the future.  However, preparing for the future doesn't have to mean worry.

3. It's Doable.
Saving is not as hard as you might think.  Some of us can afford to save more than others.  But almost everyone can afford to save something.  The key is in your monthly budget.  Make a budget that outlines expenses, retirement savings and savings for your nest egg.  Start with a small amount, an amount you may even think isn't worth it.  This way, saving becomes a habit.  And as your income increases or as you become accustomed to saving as part of your lifestyle, you can increase your allotment as you see fit.

Just remember one thing, there's no need to stress.  Just take small steps and let the universe do the rest.


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