These Habits Can Improve Your Personal Savings and Finance System – NBC Los Angeles

According to a recent survey, one in four adults say they haven’t been able to save anything in the past year, and many admit to using credit cards for their day-to-day expenses. We speak to the experts, who offer some good ideas on what to do, to set the record straight.

If you used your credit card to pay your essential bills last year, you’re not alone. According to a recent survey, 17% of those over 58 in this country said they used credit consistently in 2022, but this, as finance experts point out, is one of the biggest mistakes we can make.

“Credit cards with an interest rate of 17 or 27 percent or more greatly increase your indebtedness, and you end up paying a lot for something you didn’t have to pay that much for,” said Gilberto Cabrera, AARP’s external relations advisor. .

Many say they used their card for emergency expenses, but this can be prevented if you’re prepared. To change the trajectory of your money, the most important thing is to start saving now. Even if you think you don’t have a penny to spare, there is always a way, and it all starts with a simple question to ask yourself before you buy anything.

“Do I need this or is it something I simply want?” Cabrera explained, adding that in order to save, you have to set a budget, and many times we don’t have a good idea of ​​how much money is being saved and how much is out of our pockets each month.

“Once you have your income and expenses, you will be able to discern the most important expenses,” said Cabrera.

Also, you will be able to see where you spend the money you can save. But how much should we have saved for emergencies?

“At least a month’s salary,” Caprara said.

According to the Internal Revenue Service (IRS), those who contribute to IRAs or employer-sponsored retirement plans such as 401Ks are eligible for up to $2,000 in credit in their retirement accounts.

The best way to get this money together, starting today, is to automatically allocate a portion of our salary, so that we are not tempted to use it. How do?

“I tell the bank to cash out every check and put 1%, 10% into my savings account, what I can save is a good start. That way you have an emergency fund for the future, retirement, for whatever you want,” the expert said.

It is important not to set exaggerated goals. Be realistic, if you can only save a little each month, even if it’s $5, then do it, but yes, commit and be disciplined: the best thing is that soon a habit will be created and that fund will grow without you feeling like you’re putting too much effort into your daily life .