Select’s editorial team works independently to review financial products and write articles we think our readers will find useful. We earn a commission from affiliate partners on many offers, but not all offers on Select are from affiliate partners.
There isn’t just one correct way to manage your finances, especially since everyone’s financial circumstances and goals are different. Even so, many people do find it helpful to draw inspiration for managing their money from advice that’s become popular over the years, such as cutting out expenses you don’t use and redirecting that money toward the things you actually love.
In other words, it’s fine to spend money on simple pleasures like your favorite iced coffee every now and then, as long as you remember to get rid of that gym membership you never use or any other things that no longer bring you joy.
That said, a recent report based on Northwestern Mutual’s 2022 Planning & Progress Study found that 53% of the Gen Zers surveyed felt that making small daily purchases — such as that favorite cup of coffee — will have a long-term impact on their finances. The report also found millennials were just about on par with Gen Zers, with 52% of them sharing the same sentiment.
Many of the money moves we make today can impact the financial future we want to have. This idea, though, seems like somewhat of a double-edged sword.
On one hand, it feels empowering and even exciting to think that a brighter financial future lies ahead of us. On the other hand, the realities of a rising cost of living , high amounts of student loan debt and other factors are contributing to a widespread concern that people are currently unable to make sufficient positive money moves to get them closer to their financial goals.
Subscribe to the Select Newsletter!
Our best selections in your inbox. Shopping recommendations that help upgrade your life, delivered weekly. Sign-up here . How can we assuage fears about our financial future?
If you’re worried about what the future holds for you financially, one of the best ways to feel a little more prepared is to keep your financial bases covered at all times. This includes having an emergency fund and continuing to pay down any debt as well as maybe getting your feet wet with the stock market. Build your emergency fund
Having an emergency fund can help to offset any unexpected expenses that could otherwise jeopardize your overall financial health. For example, you could use the money stashed in an emergency fund to replace a damaged car part or pay for a last-minute medical procedure. Emergency funds can also help you make ends meet in the event you’re laid off from a job with little to no notice .
Keeping your emergency fund in a high-yield savings account such as a Marcus by Goldman Sachs High Yield Online Savings account or an Ally Online Savings Account can also help your balance grow a bit faster since you’ll be paid interest on a monthly basis just for keeping a balance. Ally Bank Online Savings Account
Learn More
Ally Bank is a Member FDIC. Annual Percentage Yield (APY)
1.15%
Minimum balance
None
Monthly fee
No monthly maintenance fee
Maximum transactions Up to 6 free withdrawals or transfers per statement cycle *The 6/statement cycle withdrawal limit is waived during the coronavirus outbreak under Regulation D Excessive transactions fee $10 per transaction Overdraft fees $25 Offer checking account? Yes Offer ATM card? Yes, if have an Ally checking account Terms apply.Even if you’re only able to contribute $20 a week to your emergency fund, something is better than nothing. If you set up automatic weekly transfers from your checking account to your emergency savings account, you’ll be building your emergency fund without even thinking about it. Pay down debt While you might use debt to acquire an asset or opportunity, such as taking out a mortgage for a house or a credit card to fund a move to a new city for a job opportunity, paying down your balance can help you feel a little more financially comfortable.Paying down debt also allows for a little more flexibility in the face of tough circumstances. For example, if your credit card limit was $5,000 and you were carrying a $4,500 balance, you would only have $500 left to float the cost of an unexpected car repair or roof leak if you didn’t have an emergency […]
Protected by Patchstack