Always put money aside out of your paycheck away in a separate account to save for rainy days. Even the poorest of people can afford 5% especially if they do that from their first paycheck. I recommend 10%, but for someone making $200 a week, $20 is a lot of money. $10 is more doable in those situations.
By Becky from Essex, MD
I disagree that even the poorest people can afford 5%. Some people really can't even afford that. Unless you are one of those "poorest people" I wouldn't say that.
I disagree with the response posted above. Everyone can and should save some money. Everyone can afford to put something aside for a rainy day...even if its only pocket change or pennies.
My income is $13,000 per year. I save $350 per month. Then, if I need to buy new eyeglasses or have my teeth repaired, I have the money!
Sometimes what we think of as needs are really only wants. Its good to know the difference.
My father taught me that it isn't how much money you earn, but how you spend the money you have!
Could be you know a different set of "poorest" people than I do. Not everyone has a job. Disability income can be extremely low, as can retirement income, sometimes well below the poverty level, and not everybody has those either. My income last month was just under $200, which covered my utility bills. So should I have not paid the water, or the electric, in order to save some?
That wants vs needs thing only works above the poverty level. If you get much below that, it's all needs - housing, utilities, food.
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