How To Use or Implement Your Emergency Fund.


Remember, when you car breaks or when your equipment breaks and you need to fix it immediately for work or daily function. And, you do not have enough money to cash flow it. What happens next, you start digging into your emergency fund, if you have one. If, you do not have an emergency fund, please start one today. It will help you feel protected and get ready for recession. What is an emergency fund? It is the money you have saved for any unexpected cost that destroy your monthly budget. These can be emergency room trip to the hospital, buying a new tire for your car and buying a medication for your child. Most people are only a few crisis away from filing a bankruptcy due to their inability to handle and manage money. We should not let life happen to us instead we should manage life and handle any issue that arises. A job layoff can cause crisis that requires the emergency fund. The emergency fund will help to keep light on, keep food on the table, and start looking for the next job. On the other hand, we cannot use the emergency fund to buy things, not consider as an emergency repairs. Using your emergency fund to buy snacks, eating out, dishing and wining your friends are not the proper use for this fund. Buying new stuff is good, but I do not think you should sacrifice your future or wealth for new scent. It is essential to know that the crisis is urgent before spending your emergency fund on it. If your water heater or AC breaks in your house. You can be able to fix them without stressing yourself about things. Remember, you are the captain of your life and only you can plan for your life.

Comments

Post a Comment

Popular posts from this blog

How Smart People Plan Accordingly For Their Retirement.

Do you know anyone who is considering retirement and do they have a healthy nest egg? How did they achieve their nest egg? They are not financially smart like Warren Buffett or hold the secret solution to retiring comfortably. They did not play the Russian roulette with the stock market or watch it every single day. People who are ready for retirement constantly make contribution towards their investment and saving plans for every month. They are very responsible with their spending and intentional savers in their daily lives. They use the help of professional financial advisor to achieve their goals. The Secret of Saving for Retirement Successfully are listed below: 1). Use your biggest wealth building tool to your financial advantage. 2). They keep their expenses low. 3). They invest 15% of their income. 4).  They do not fund any expenses without referring to their budget. 5).  They meet routinely with their investing professional. 6).  Have a plan and update ...
Read more

The Mistakes We Make everyday About Money.

Here are some of the mistakes we make everyday: It can be cars that we cannot afford, personal loans or house mortgage causing people to file bankruptcy. Here are some money myths that will keep you broke and not compete in today's society. So, why are people still making money mistakes and not changing their ways. Most people are still mismanaging their money and still blaming the society for not setting a law. Please, do not buy into the society popular money myths. Here are some myths that are bad for your money. 1). Debt is a tool. 2). Car payments are a way of life. 3). Loaning money to your family show you care. 4). You cannot go to college without student loans. 5). You can make enough money to catch-up on your retirement. 6). You already understand spending your money, so you do not need a budget. 
Read more

Money and Relationship.

Do you think that most couples argument is about money? The recent survey shows that 63% of couples think that their significant other overspends in many ways, according to TD bank. Money is the leading cause of fight and divorce in North America. Those little fights can cause serious marital problems as time goes on based on the National Council on Family Relations. It is extremely important to figure out how to argue with your significant other in a productive way. In addition, to cultivate a solid marriage and relationship, it is essential for couples to take time to work on their relationship and money. Marriage brings people from different backgrounds and different life experiences together, if they can succeed they need to work on their money and relationship daily. Whether couples realize it or not, money issues can cause havoc in relationship and lead to a fail marriage. The Seven Area of Conflict in Marriages: 1). Separate but equal. 2). Lifestyles. 3). Personality Diff...
Read more