FINANCIAL FREEDOM FRIDAY'S - How Much Are You Saving?

Are you saving money? If so, how much are you saving? What do you do with your savings?  Why are you saving?

Savings - Every individual SHOULD have a savings Emergency Fund, this is for true emergencies - loss of job, unexpected medical bills etc.  This savings account should only be withdrawn from when there is a bona fide EMERGECNY.

Short Term Savings - you may have a goal for a vacation, graduation for yourself or a loved one, something happening in the near future you're saving up for.

Long Term Savings - you may have a goal to purchase a car cash, purchase a home, invest in a property or other investment vehicle, something happening 3 or more years from now you're saving up for.

Opportunity Savings - this is money being saved just in case the right investment opportunity arises, a new stock, bond, IPO, business etc.

While in theory saying DON'T touch your savings if its not an emergency or for its intended purpose is a great rule of thumb.  The truth is, things happen, money becomes low and instead of borrowing or charging it (creating more debt) many will tap into their savings.

A friend on social media suggested the 25/75 rule.  You can only spend 25% of your savings at a time.  If you have $1,000 saved, you shouldn't be spending more than or taking more than $250 from that account.  If you have $10,000 saved, you can use $2,500 (this should still be for an emergency!).