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How to Budget

Savvy Tip: Don't Skimp When It'll Hurt You

It's never wise to take a one-size-fits-all approach to budgeting — you should always evaluate your situation and do what works for you. For example, if you know you're prone to car accidents, don't skimp on your insurance, just because budgeting experts say you don't need the most comprehensive coverage. If you're a bigger consumer than most, invest more in your 401k because you'll need more money to spend in your golden days.

Sure, others may be saving more in certain areas, but you don't always have to follow suit. You need to do what makes sense for your own situation. Instead, try to save in other areas that you don't mind cutting back on.

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