Most people act like the amount of money that they have in their bank accounts is largely up to factors that they have little control over. Is this true? Is there a certain amount you should have? How much is it? The answers to these questions and more can help you to shape your financial future so that it will look much better than it ever has before.
Can You Control The Amount In Your Bank Account?
You most certainly can control the amount of money in your bank account. You can do this both by working to increase your earnings and by choosing when to spend your money and when not to. While the first may not always be the easiest to work with, you retain control over the second. Anyone can affect the amount of money that they have in their bank account with lifestyle changes if they so choose.
How Much Should You Have?
You should have enough to support yourself for at least six months. This may sound like a large amount, but keep in mind that bad things happen. At some point in life, there is a good chance that you will have unexpected expenses or a decrease in income that you will have to deal with. Knowing this, you can start saving up to reach this magic number. If you’re ambitious, you can even aim for a year’s worth of expenses, but it’s better for most people to start with six months. The unexpected happens, but those who expect the unexpected will be prepared for it.
How To Get To That Golden Amount
To get to that golden amount, you need more money coming in than you have going out. Many individuals have the bad habit of spending the majority of what they make, so they have bank accounts that are always barely hovering above being empty. Consider the impact of cutting out any expenses that you don’t need to stay alive. Tally them up so that you know exactly how much it takes just to keep you living. You don’t need to cut them all out, but this will give you an idea of how much you could save if you were totally committed. Now, you can decide which ones to cut out, at least until you have as much money as you should in your bank account.
Now that you know how much money you should have in your bank account, don’t be overwhelmed. This is not meant to make you feel bad but to spur you into action. There will come a day when you need extra money. Think about how amazing it will feel to know that it’s sitting in your bank account, waiting to take care of your problems.