{"id":131959,"date":"2020-12-12T17:22:22","date_gmt":"2020-12-12T14:22:22","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/even-100-in-savings-can-protect-against-negative-chains-of-events\/"},"modified":"2020-12-12T17:22:22","modified_gmt":"2020-12-12T14:22:22","slug":"even-100-in-savings-can-protect-against-negative-chains-of-events","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/even-100-in-savings-can-protect-against-negative-chains-of-events\/","title":{"rendered":"#\n  Even $100 in savings can protect against \u2018negative chains of events\u2019"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3df6119cba5\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3df6119cba5\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/even-100-in-savings-can-protect-against-negative-chains-of-events\/#The_savings_rate_of_disposable_income_was_136_nationally_in_October_continuing_a_monthslong_slip_from_record_rate_in_April\" >The savings rate of disposable income was 13.6% nationally in October, continuing a monthslong slip from record rate in April.<\/a><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/even-100-in-savings-can-protect-against-negative-chains-of-events\/#%E2%80%98The_journey_towards_a_savings_goal_doesnt_exist_in_a_vacuum\" >\u2018The journey towards a savings goal doesn\u2019t exist in a vacuum\u2019<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/even-100-in-savings-can-protect-against-negative-chains-of-events\/#Andrew_Keshner\" >Andrew Keshner<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#<br \/>\n  Even $100 in savings can protect against \u2018negative chains of events\u2019<br \/>\n<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"The_savings_rate_of_disposable_income_was_136_nationally_in_October_continuing_a_monthslong_slip_from_record_rate_in_April\"><\/span>\n  The savings rate of disposable income was 13.6% nationally in October, continuing a monthslong slip from record rate in April.<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"F33E5412-3B08-11EB-B14D-F469CCF59821\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       When it comes to money in a savings account, a new survey finds even a little can go a long way \u2014 towards keeping the lights on, avoiding high-interest loans and staying in your house. <\/p>\n<p> As the personal savings rates slips nationally and lawmakers debate a COVID-19 relief package injecting more cash into struggling households, Thursday\u2019s survey suggests noticeable benefits can come with keeping as little as $100 in a savings account. <\/p>\n<div class=\"paywall\">\n       It\u2019s a bit of good <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> for people who find the advice about maintaining an emergency fund for three months\u2019 expenses a tip that\u2019s simply out of reach. <\/p>\n<p>The study, from the FINRA Investor Education Foundation and SaverLife, looked at savings account activity for nearly 700 people between January and March, and then caught up with them for a survey in February and May.<\/p>\n<p><strong>The researchers found: <\/strong><\/p>\n<p>\u2022 On average, 19% of people who kept at least $100 in their account over three months experienced a utility shutdown of some sort in the past five years, like a cutoff on gas, electricity or a cell phone. 37% of people with accounts at $100 or below went through the same thing. <\/p>\n<p>\u2022 On average, 23% of people with at least $100 used high-interest loans, like payday loans and auto title loans and went to places like pawn shops in the past five years. It was 42% for people who had $100 or less. <\/p>\n<p>\u2022 On average, 17% of people maintaining at least $250 in their account for three months said they had to move in the last five years because they could not afford their place. By contrast, 29% of people with $250 or less said they had to move in the past five years due to finances. <\/p>\n<p>\u201cEven a small dollar cushion can improve a household\u2019s financial situation,\u201d said Gary Mottola, research director at the FINRA Investor Education Foundation, the educational arm of the nonprofit organization regulating the brokerage industry. SaverLife, which teamed up with the FINRA Foundation on the survey, is a financial-<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> company incentivizing savings. <\/p>\n<p>It\u2019s easy to figure how more money can make everyday life easier, but how exactly do these savings factor in here? It\u2019s unclear whether there\u2019s something special about dollar thresholds like $100 and $250, Mottola said, but he thinks it\u2019s a matter of correlation, not causation. <\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p> Someone with enough money in their account could afford at least partial utility payments to keep the lights on and they have some liquidity to sidestep high-cost loans that offer quick money upfront, Mottola said. But people typically can\u2019t make partial rent or mortgage payments, he said. <\/p>\n<p>\u201cOne hypothesis is small dollar amounts prevent negative chains of events,\u201d Mottola said. With even a little bit of extra money to partially pay other costs, Mottola said a person may still have enough for rent and be able to avoid high-cost loans that could make rent and mortgage payments more difficult down the road.<\/p>\n<p>While the goal of three months of expenses in a rainy day account may seem difficult and \u201cdemotivating,\u201d Mottola said \u201csmaller achievable saving goals can motivate families to save and give them a sense of hope that they can handle unexpected financial challenges.\u201d <\/p>\n<p>In October, Americans, on average, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bea.gov\/news\/2020\/personal-income-and-outlays-october-2020\" class=\"icon none\">saved 13.6%<\/a> of their disposable monthly income, according to the Commerce Department\u2019s Bureau of Economic Analysis. That continues a months-long slide from April, when the rate hit a record high of 33% as consumer monthly spending fell and income rose, boosted by stimulus money. <\/p>\n<p><strong>Don\u2019t miss:<\/strong>Here\u2019s the case for Elon Musk, Warren Buffett and the rest of America\u2019s billionaires sending $3,000 stimulus checks to everybody<\/p>\n<p>As talks over another relief package continue, direct $600 checks and supplemental federal $300 unemployment insurance payments are some of the debated provisions. <\/p>\n<h6><span class=\"ez-toc-section\" id=\"%E2%80%98The_journey_towards_a_savings_goal_doesnt_exist_in_a_vacuum\"><\/span>\u2018The journey towards a savings goal doesn\u2019t exist in a vacuum\u2019<span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p> The latest survey may serve as another reminder on the importance of having a savings account \u2014 but that\u2019s easier said than done if the pandemic is making household cash is sparse and snuffing job prospects. Nearly one in four people recently said they\u2019d be in financial \u201csurvival mode\u201d in 2021, where they\u2019d be focusing on getting by day to day, not saving for the future. <\/p>\n<p>Bruce McClary, the National Foundation for Credit Counseling\u2019s senior vice president of communications, gets that. \u201cReality can be pretty harsh,\u201d he said. \u201cThe journey toward a savings goal doesn\u2019t exist in a vacuum.\u201d <\/p>\n<p>Nevertheless, there are things people can do to get on the right path, he said. <\/p>\n<p>Websites like<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/americasaves.org\/\" class=\"icon none\"> AmericaSaves.org,<\/a> a campaign run by the Consumer Federation of America, and the <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.consumerfinance.gov\/start-small-save-up\/start-saving\/\" class=\"icon none\">Consumer Financial Protection Bureau<\/a> offer free resources for people who want to learn more about how to build up their savings. <\/p>\n<p>McClary\u2019s organization is a network of non-profit financial counseling organization across the country and the NFCC website <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nfcc.org\/?_ga=2.198319791.1011646846.1607617953-989815974.1607617953\" class=\"icon none\">offers ways for people to get in touch with non-profit counselors<\/a> who can help them with budgeting plans, savings goals and debt management. <\/p>\n<p>Savings is a matter of dollars and cents, but it\u2019s also a psychological matter that involves motivations and habits, McClary said. For example, there are two different <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roaches to paying down debt and building savings. There\u2019s the so-called \u201csnowball\u201d method of paying off debts from the smallest to the largest and there\u2019s the \u201c<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nerdwallet.com\/article\/finance\/what-is-a-debt-avalanche\" class=\"icon none\">avalanche<\/a>\u201d method of paying off debts, starting with the ones with the highest interest rates. <\/p>\n<p>It comes down to which approaches keep someone personally engaged in getting ahead, McClary said. <\/p>\n<p>Someone building their savings right now shouldn\u2019t beat themselves up for using it or contributing less than occasionally planned, McClary said. \u201cThere are acceptable purposes for dipping into savings. It\u2019s not like you\u2019re creating something you never intended to use. \u2026 You set the rules. You\u2019re the one who defines what\u2019s an acceptable purpose.\u201d <\/p>\n<div data-layout=\"inline\n              \" data-layout-mobile=\"\" class=\"\n        media-object\n        type-InsetRelatedArticles\n          inline\n  article__inset\n        article__inset--type-InsetRelatedArticles\n          article__inset--inline\n  \"><\/p><\/div>\n<div data-layout=\"\n              inline\" data-layout-mobile=\"\" class=\"\n        media-object\n        type-InsetCommentingPromo\n            \n            inline\n  article__inset\n        article__inset--type-InsetCommentingPromo\n            article__inset--inline\n  \"><\/p><\/div>\n<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Andrew Keshner\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Andrew_Keshner\"><\/span>Andrew Keshner<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7BF33E5412-3B08-11EB-B14D-F469CCF59821%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Even $100 in savings can protect against \u2018negative chains of events\u2019 &#8221; The savings rate of disposable income was 13.6% nationally in October, continuing a monthslong slip from record rate in April. When it comes to money in a savings account, a new survey finds even a little can go a long way \u2014&#8230;<\/p>\n","protected":false},"author":1,"featured_media":131960,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-131959","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/131959","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=131959"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/131959\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/131960"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=131959"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=131959"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=131959"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}