Friday, May 24, 2019

Expect the Unexpected - Emergency Fund

What is an Emergency Fund?

An emergency fund is the money you save for those unforeseen expenses - a.k.a. life happens.  Your budget is made up of monthly expenses like Giving, Saving, Housing, Transportation, Food, Personal, Lifestyle, Health and Insurance.  Your emergency fund is for the events that you did not anticipate in your budget.  When expenses hit outside your budget (i.e. Car Repair, Home Repair), you have the money that can easily be accessed to pay for the unexpected.

The emergency fund needs to be available and not invested (a money market is a good spot for an emergency fund).  You don't want to utilize debt and credit cards to get through unexpected car repairs or job changes.

Sunday, May 19, 2019

Personal Budget = Freedom

Budget - its not a four letter word and yet to some, it strikes a cord of control and misery.  The budget of Income and Expenses is a key to having your money work for you opposed to the thought that you work for money.  A first step in breaking out of this cycle is to budget and determine where the money is going.  Money kept to roam freely, will freely leave and you won't know where it went or if it ever is coming back.

To begin a budget, have a budget meeting every month and determine where your money is going the next month.  Every month is key, as cash flows will change on a monthly basis.  Once a budget has been completed the next key will be to tack the expenses - are things working out as planned?  Do they need to be adjusted?

Sunday, March 31, 2019

Clear Your Thoughts - Reduce Debt

Debt - an amount of money borrowed by one party from another.  Debt is used as a method of making purchases that are not affordable under normal circumstances.  A debt arrangement gives the borrowing party permission to borrow money under the condition that is to be paid back at a later date, usually with interest.

While debt enables purchases, it also can create another level of stress and anxiety that can go beyond a healthy level.

The rich rule over the poor, and the borrower is slave to the lender.  Proverbs 22:7