Michael Markey, the co-founder and owner of Legacy Financial Network, has shared the same message countless times that it's important to have at least $5000 in savings and checking. How is that possible when it feels like there's no money to put in?
According to Markey, many people invest most of their money into retirement plans or 401Ks. However, that money just sits there and doesn't do anything until you're old enough to use it.
The way people should save their money is short term income, long term income, then growth. By putting more money into savings and checking instead of a retirement plan, the less likely you'll be dipping into the retirement plan when life doesn't go as planned.
When pulling money out of retirement plans early, you're charged with heavy fees, and have less to live off of later on. This way when life gets in the way with an unexpected expense, there will be the $5000 balance in savings or checking to fall back on.
If you would like to more information on how you can fireproof your finances, visit www.legacyfinancialnetwork.com or call 1-855-LFNETWORK.