July 13, 2013

Taking Charge of Your Money... Your Mini Emergency Fund

Follow along with me, one step at a time. I have never learned to control my spending. It has always controlled me. There seems to be more month then money. I have always been short and I never seem to have enough.

Where does it all go!
Sounds familiar?
Well, it does to me.
I've had it. It’s time for me to take control of my money instead of my money controlling me! This time, I am determined. I was recently introduced to a system that if followed, promises to bring you peace and tranquility knowing that your bills  will be  paid and that you will even have some money in the bank. The steps are  divided into sections and topics, to help simplify  the process.
You are on Part 3 of the Taking Charge of Your Money series

Let's Begin...


We hear that we should have one but... not many of us do:
An Emergency Fund

Things Will Happen!
When you least expect it, WHALA! something happens and you'll need to take immediate action.
The other day, I was pulling up to a  friend's driveway when all of a sudden, I hear this  loud sizzling sound.  I jumped out of the car and saw  that the sizzling sound was coming for the tire.  I  had just hit the tire against the curve. The tire was puncture by something on the curbside.
Outcome: Non repairable and in need of a new tire .
Good thing, I had started and emergency fund so instead of putting the repair on a credit card, I was able to purchase the tire CASH! That was definitely a first for me. In the past, all emergencies would be paid with a credit card. Then after I received the bill I would start worrying and losing sleep over how I was going to payoff that unexpected expense .
Because I  have already taken the Steps to Take Charge of Your Money by...

  • Step 1- Write down all expenses including periodic expense &
  • Step 2- Gotten Current with all the over due regular expenses ( like light, gas, cable, telephone)
Let's Start Building Our Mini Emergency Fund
of $1,000
Eventually the goal is to save 3-6 month of living expenses however staring with a mini emergency fund of $1000. will save you  hours of sleepless nights and worry and help you pay for the immediate emergencies.
Even if you think that there is no extra money anywhere to build an emergency fund ,it is possible.
It's  time once again  to get creative.

The goal : 
  •  stop using credit and getting into more debt
  •  find extra money to start building your $1,000 mini emergency fund as fast as you can! 
This fund should go into an account used only emergency. 

Build it as fast as you can by:
Getting a Part Time Job
Baby Sitting
 Have a Tag Sales
Sell on EBay /Amazon
Cut down of Your Grocery Expense
Get Creative!
Just a Quick note:
I am grateful to have started my emergency fund. It saved me from worrying and  sleepless nights, about how I was going for the unexpected expense of replacing a tire. 
This time, I did not get into  more debt by charging the tire  on a Credit Card because after all,  I am Taking Charge of My Money.
Important thing to Remember

If an emergency arises and you need to use money from your mini emergency fund, just remember before moving to the next step of Taking Charge of My Money series, you will have to replenish the emergency fund.

Things will happen , will you be prepaid?
At this point we have discuss:
Writing a Budget
Getting Current
Starting an Mini Emergency Fund- $1,000

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