Stop Worrying: This is how to build emergency cash Now
Bobby Clark
Helping STEM professionals reduce financial stress: Money Coach | Certified Financial Educator
Hi Friend,
I must be honest, as a money coach I am not immune to money worries. For years I worried about not having a cash reserve.?
My effort to save was present but the results were not. I was taught how to save early in life.?
Many times emergencies came faster than I could save for them. It seemed for every $100 I saved, there was an emergency waiting to consume it.?
Many times I felt hopeless. But, I did not give up. If you are in a similar situation, I pray that you don’t give up either.
An emergency fund is a cash reserve that’s set aside for unexpected expenses. This reserve helps you to survive a money emergency.
?It prevents you from disrupting your normal standard of living.
If you keep a large balance in your checking account you still could have an emergency fund. There is no magic number for how much money you should set aside for an emergency.
Without an emergency fund you could face a setback. You may face a debt crisis with lasting impact.?
Your crisis can include unexpected bills. For example your pet could need medical attention.?
When you least expect it a medical emergency can happen. Medical emergencies can come without any warning.?
You may have sudden car or home repairs. For example you could hit a pothole and damage your car.?
Your auto insurance may not cover the total repair cost.
As a homeowner you will have a home emergency. You will need money for the deductible to activate your insurance.?
The same applies for apartment living and renters insurance.?
You’ll need an emergency fund if you lose your job.?
Your emergency could be no cash for a group trip or leisure activities with friends. It all depends on your definition of a money emergency.?
No matter what form it takes, a crisis will happen to you at some point. You will need a lot of money when it happens.
A sudden expense can reduce your cash balance. As a result you have less protection against a future crisis.
You may rely on credit cards or loans, which can lead to more debt. You may also pull from other savings, like retirement funds, to cover these costs.?
These behaviors make it difficult to reduce debt and increase savings.
I want to share my favorite steps to protect you against a money emergency.
I started using these steps decades ago.
Start Small
Let’s say $100 or less. You can increase this amount if the cash is available. It’s your choice to put a set amount aside each day, week, or payday period.
Save First
Most of us pay all bills and expenses before saving. Most times there is no cash left. Consider saving first, then pay bills and expenses.?
Make Your Saving Automatic
Automatic saving is one of the easiest ways to save. You will develop a consistent saving behavior.? One common way to do this is to set up recurring transfers through your bank or credit union.?
Take Advantage of Cash Gifts
There may be certain times during the year when you get an influx of cash. Tax refund, bonuses and holiday gifts are examples.
Identify what comprises an emergency. Not every sudden expense is a dire crisis.?
If you already have an emergency fund, congratulations. When you spend down your emergency savings, work to build it up again.
Where Should You Keep Your Emergency Fund
You should put it somewhere less accessible. Always separate your emergency fund from your day-to-day cash. This makes sure it’s there when you need it.
Remember, an emergency fund helps you to survive a money emergency. It prevents you from disrupting your normal standard of living. Start small, save first, make saving automatic, and take advantage of cash gifts. These steps will make sure that you will have cash when there is an emergency.?
What I have learned?
Provide in advance for the needs of thy growing age and the protection of thy family.? George Samuel Clason
Guest Author
“What are simple ways to prepare our wallets for those big daycare expenses?”
It’s a question I get asked A LOT. By friends, family, folks in my community, and even clients.
I meet a lot of people who’re looking for help with daycare expenses. And when I interact with them, I realize that most folks don’t really understand how to find the right daycare for their children and prepare their finances for the added costs.
Which is why I’m very excited to share this super informative blog post by Accountable colleague Rachel Collins. Rachel is a financial coach on a mission to help others use their money so they can thrive in all areas of life.?
This is one of the best articles I’ve read that provides five clear and comprehensive ways to prepare our wallets for those big daycare expenses.
Testimonial
I got more out of our meeting than expected.? As I shared with you I'm very insecure regarding my finances and so our sessions are extremely therapeutic. I felt as if for the first time I was being heard. I feel much more confident now? about resolving my challenges versus hiding. I feel like now I'm heading in the right direction and not digging a hole around myself. I have been avoiding this for so long, now it's time to face it head on. Recent client.
Knock out these money-related tasks now to help you finish the month strong.?
It’s FREE!
Thrilled to announce the launch of the Money Mavericks Video Game for teens!?
Money Maverick is an interactive video game to impart impactful lessons on mindset, habits, and behaviors crucial for building wealth and creating happiness.
One of the things that sets this game apart is 66 real-world scenarios, offering a hands-on learning experience to better equip teens for success in the real world. After all, the best learning is from doing.
But here's the kicker –? I'm giving the game away for free!
You don't have to keep stressing. If deep down you know that you are not happy with your money, book a call today.?
Thanks for reading this far.
Stay wise and healthy.
Smile.
See you May 1st!
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