How to Expect The Unexpected
By Amanda Leigh Furness, AFC®
What does an Emergency look like in your life?
- You get rear-ended at a traffic light
- Your car is making an ominous “clunk, clunk” sound
- There’s a call from your child’s school stating that your son has fallen off the jungle gym and an ambulance has been called
- Fluffy eats a Christmas ornament, and there’s a big veterinarian bill
- There’s a death in the family and you have to fly across country on a moment’s notice
- You go to the dentist for a cleaning, and you end up getting a root canal
If the term “Emergency” sounds alarming, then why do the above examples seem so familiar?
The answer is simple. It’s life. It happens to all of us. It’s not if it’s going to happen. It’s when it’s going to happen. That’s right, just as soon as your budget is on target; one of these nasty little emergencies pops up. We know what the problem is: the emergency. So if you can’t change the problem, then what’s the solution? E
Expect the Unexpected.
According to Dave Ramsey and his Seven Baby Steps, the very first step to Financial Success is to start a $1000 Emergency Fund. That’s right, the first step. Before you pay off debt, save for your child’s education, or even invest in your own retirement, you should start an emergency fund. It’s the concept of paying yourself first. Prepare for the emergency, and borrow from your own funds, rather than a using a credit card to pay for the unexpected. The best part is when you borrow from yourself you pay 0% interest, and then the emergency doesn’t seem like so much of, well, an emergency!
- Written by Super User
- Category: Blog
- Published: 27 September 2012