By Judy Lawrence, M.S. Ed.
Financial Counselor, Money Coach and Author of “The Budget Kit 6th Ed.”
1. EXPECT THE UNEXPECTED
Remember the last time your budget was thrown out of whack with some weird, unexpected emergency? The nasty dog fight that landed Fido at the vets. The washer breaking down when you had a load full of soaking, dirty clothes. And yes, that last precious bite that broke your tooth.
You’ve heard it hundreds of times, but the “Pay Yourself First” mantra still holds as a solid way to be better prepared for an emergency. Consider emergency savings as a fixed expense, like a bill, where you pay yourself first.. This fixed amount of money automatically deposited into your savings on a regular monthly basis (even a small amount to get you started) can pay huge emotional and financial dividends in the long run.
Guidelines recommend anywhere from 6 – 8 months’ worth of take home pay to cover your basic fixed living expenses. But really, having any amount in savings and consistently adding to that fund is the most powerful habit you can start.
2. THINK AND ACT PREVENTATIVELY
Put thought, money and action into caring for your health, your teeth, your kids, your pets, vehicles, home and equipment. At first the effort may seem like a pain, but the huge savings of money and time by avoiding unnecessary emergencies will pay off greater than you realize.
You know the drill…
- Get your regular exercise, eat the right foods and Read More →