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She recentlysharedabudgetingtip thats worth considering as you navigate your personal financial landscape.
Warshaw said you should leave room for a cash cushion in your bank account each month.
Not doing so could be a big mistake thats costing you.
Heres what a cash cushion is andhow it can help.
Cash Cushion, Problem-Solver
Warshaw used to struggle with overdrawing her accounts.
Even though she would plan her budget months in advance, unexpected charges kept messing that budget up.
And if you get charged overdraft fees, these costs add up over time.
The Consumer Financial Protection Bureau says American households that overdraft spend more than $185 annually on these fees.
But more than that, overdraft fees cause stress and have the potential to disrupt your financial planning.
For instance, anunexpected credit card paymentcould prevent you from paying your rent on time.
You could transfer those extra dollars out of your account when you no longer need them there.
The strategy you choose should reflect your unique concerns.
But if youre like many Americans, Warshaws account cushion idea could make sense.
It can help you avoid unnecessary bank fees and do more with a limited budget.
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