Financial Vices Setback Savings Goals
Do your minor expenses seem to add up?
From stopping by at the local coffee shop to eating out excessively, financial vices may have an adverse effect to your savings goals.
Having savings goals helps to build a strong financial future. In fact, the savings goal of a sturdy emergency fund creates the safety net of financial coverage during unexpected emergencies. Additionally, contributing to your company’s 401(k), or other savings plan, will help fund your longest vacation – retirement.
However, achieving these goals takes time and commitment. An overindulgence in financial vices can easily eat up at your savings goals.
Millennials enjoy eating out, grabbing a coffee or stopping at a bar.
No other generation succumbs to their financial vices like Millennials. The big three vices for this generation are eating out at least three times per week, buying coffee at least three times a week and going to a bar at least once a week.
It’s important to enjoy your financial vices and even budget for them, but overindulging to the point of not having a strong financial foundation is a major, and for many, a dangerous setback.
Instead, it’s better to contribute more to financial goals like building an emergency fund to cover 3 to 6 months’ worth of living expenses and contributing to your company’s 401(k).
Check out the infographic below to see what financial vices you may be overindulging in.
You can also download the infographic here.