Saturday, September 25

Tag: emergency

How to Prepare For a Financial Emergency

How to Prepare For a Financial Emergency

Finance
What can we now expect? Our economy is going to sink. Nothing can stop it or slow it. And circumstances like this aren't going to improve. How can you protect yourself, cope with this crisis, do what it takes to survive and ultimately prosper once the ship goes down? Part 2 of my 3-part series: Economic Recession (Part 2) examines these questions and provides answers. At first blush, the article may seem like a tsunami of doom and gloom. But those who have been through an economic emergency will tell you that such a series of global events makes economic planning all the more important. It's extremely difficult to make economic plans when the economy is in turmoil. However, if you have had such an experience, have a strategy in place and are ready to endure the next tough financial blo...
How Important to Have an Emergency Fund?

How Important to Have an Emergency Fund?

Finance
There is a financial concept that says "pay yourself first". This concept is very common in Dave Ramsey's Debt Free and Simple Plan. You pay bills first, then you pay yourself, and then you pay your rent or mortgage. If you don't have an emergency fund then you're paying yourself last. If you have an emergency fund then you're taking your bills and paying them, and not only that but you're paying your budget before you pay your self. The first part of most of his plans only teaches you to pay yourself first, but not always for everyone. What's the emergency fund? The emergency fund is a fund you have that is two or three times your monthly non-dischargeable income. This doesn't mean it should be an amount equal to three months of expenses, just enough to cover that amount of mone...