Does it surprise you when your car needs new tires? Are you shocked when your refrigerator, furnace, or stove quit working? Do you worry about your children needing larger shoes or clothes? These are all good reasons to have an emergency fund!
None of us knows when an appliance will need to be replaced, when we will blow a tire, or something happens to our winter coat, but life teaches us that some of these things will happen. By having an emergency fund, you are able to meet these family “needs” without stress.
Then there are the larger concerns of life such as illness, death, loss of job, tornado or another disaster. Do you have 3 – 6 months of family living in savings? If not, begin today to build your emergency fund. Even small steps, say $50 or $100 saved a month, will add up over time.
Where can you “find” this money? Maybe skip pizza and beer out with the friends a couple of times a month; reduce your grocery bill by 10 percent; quit smoking; take a part-time job; save your tax refund, birthday money, bonus or pay raise.
By planning ahead, you will reduce much of the stress that is often associated with financial concerns. Many people think that earning more money alone solves financial stress, but if your toys - boats, motor cycles, 4-wheelers, houses, jet skies, big screen TV’s, computer and stereo systems - get bigger and more expensive, the financial stress can be as great or greater than before your income increased.
Consider each dollar carefully. Is it moving your family toward your goals or just satisfying a passing fancy? Do you ever buy things and then wonder “why” in a week, month or year? Your financial future is largely up to you. Decide carefully!
Ruth; Deb; Meridith
4/30/2006