Millennials Consider This Their Top Financial Mistake
We all make our share of money-related mistakes in life. For some of us, that means buying too large or expensive a home. For others, it means passing up a promotion and the salary boost that comes with it. But a new TD Ameritrade survey finds that millennials consider not having an emergency fund to be their primary financial blunder.
Why is having an emergency fund so important? It's simple: Without one, you risk racking up loads of credit card debt, or struggling financially in other ways, the minute an unplanned expense lands in your lap.
Imagine you wake up one morning in the dead of winter to find that your heating system no longer works. That's not a repair you can put off, but if it costs $2,000 and you don't have that money sitting in savings, you'll have no choice but to borrow it, and generally in the form of charging it to a credit card. Once that happens, you'll be subject to whatever exorbitant interest rate your credit card company charges on outstanding balances, which will cost you extra money and make that debt more difficult to pay off.
Quelle Fool.com
