Search Results for: build emergency account

4 Tricks to Build Your Emergency Fund on a Budget

You hear it all the time, you need to have an emergency fund for those mishaps that occur in life. But the question is: How do you build an emergency fund on a budget? What is an Emergency Fund? It's a sum of money (like a $1,000 starter emergency fund or 3-6 months of expenses) that is set aside for an unexpected expense, a financial shortfall, or other unexpected situation. Most consumers prefer to have an emergency fund setup in the form of a savings or money market account, but … [Read more...]

Why It's Important to Have a Financial Accountability Partner

Becoming financially responsible and successful at managing your money can be difficult. It’s a lot to take in and adjust to. If you’re the type that loves to shop or go out a lot, you’re going to struggle. What if you had someone to help you? Let’s look at why it’s important to have a financial accountability partner. Healthy Competition Many people love healthy competition. When you have a financial accountability partner, you can compete to see who pays off their debt the fastest, who’s … [Read more...]

4 Reasons You Need an Emergency Fund

Chances are you've heard that you need an emergency fund, but why? Why is it so important to have an emergency fund? You have the money to cover your bills each month and have a good job. This may lead you to believe that an emergency fund isn't necessary. That couldn't be further from the truth. Let's take a closer look at reasons you need an emergency fund. You Own a Home If you own a home, all repairs are going to fall on you. It may be a central air unit that quits working in the middle of … [Read more...]

Why You Need an Emergency Fund?

If you know anything about finances, you know that people are always recommending an emergency fund. But, why? Why do you need an emergency fund? It's something that many people have asked over the years. Just because someone tells you need something doesn't always mean you need it. In this case, however, you do. Let's take a closer look at why you need an emergency fund. Emergencies Can Be Expensive Whether it's your car breaking down or a leak in the roof, emergencies can be expensive. If … [Read more...]

How to Quickly Build an Emergency Fund

You never know when the unexpected is going to occur. That's why it's essential to have an emergency fund. Some financial experts recommend having a savings account that could cover your expenses for three to six months. For the purpose of this article, we're going to focus on just getting started with a $1,000 balance. Let's take a closer look at how to quickly build an emergency fund. Sell Items Around the House One of the easiest things you can do to build your emergency fund is to sell … [Read more...]

How to Save for an Emergency Fund

Now that you know what an emergency fund is and why you need one, the next (and hardest) step is to actually save for an emergency fund. You'll want to quickly pull together an amount of money (like $1,000) so that you have enough money for most emergencies that come your way that could ruin your budget (like a car repair or trip to the ER). How to Quickly Save a $1,000 Emergency Fund: Sell Your Stuff - Gather all the stuff around your house that you don't use anymore and hold a huge … [Read more...]

Build an Emergency Fund

Do you have an emergency fund that you can draw against in case of an unexpected layoff or home/auto/medical expenses? If not, you should. What is an Emergency Fund? According to the Financial Dictionary, an emergency fund is a reserve of cash kept available to meet the costs of any unexpected financial emergencies. It is designed to provide financial back-up for unexpected expenses or for a period when you aren't working and need income. An emergency fund should be used only for true … [Read more...]

21 Ways to Spring Clean Your Finances

When it comes to spring cleaning, you may think about your garage or even your closet. What you may not consider is your finances. When’s the last time you really took a good look at them? What if you could get a better interest rate or cut reoccurring bills to save money? While you’re cleaning the windows and tossing out old clothes, now is also the perfect time to spring clean your finances and get your financial house in order. Review Your Financial Goals Has your financial … [Read more...]

Why Savings Challenges Won’t Help You Save {and What to Do Instead}

Do you want to save your money but keep failing miserably? Then keep reading to know why some money-saving plans fail and what better options you have available. Why do some money-saving challenges not work? As we know, consistency is critical to be successful at anything. Similarly, money-saving challenges will only work if you will stick with them consistently. Most people start a money-saving challenge excitedly, but after a few months or sooner, they give up … [Read more...]

Save Your Change {small savings add up}

It can be hard to save money (whether it's your emergency fund, paying cash for Christmas, or saving for your next car) and pay off debt. You might feel overwhelmed with all your current expenses and feel like you don't have anything extra to save for the future. However, here's one easy trick to help you save money towards your goal - save your change! If you add an average of $0.50 in change to your change jar every day for a year, you'll have $182.50 saved without … [Read more...]

How to Survive a Recession

Does a recession have to mean that your family will suffer financially? Not necessarily. There are things you can do to help protect yourself from problems and survive a recession. Whether you pay closer attention to where your money goes each month or build up your savings account, you can remain financially stable. Let’s take a closer look at how to keep a recession from wrecking your finances. Don't Panic If you lose your income or your investments seem like they're dipping ever … [Read more...]

How the Cash Envelope System Works with Your Budget

Do you stick to your budget? Many families have an idea of how much they want to spend on variable expenses, but don’t actually keep track of the amount spent. If you start tracking your expenses, it can be shocking to see how much you’re really spending. If you find that you’re living paycheck to paycheck or wondering where all your money goes, you need to think about the cash envelope system and how it works with your budget. Encourages Better Planning So many people go through life just … [Read more...]

5 Tricks to Save Money on a Tight Budget

You may think that you don’t have enough income to put money in savings. The truth is even if you’re on a tight budget, you can save money. People often think that just because they don’t have a lot of money to save they shouldn’t bother. This couldn’t be further from the truth. Let’s look at how to save money on a tight budget. Pay Yourself First Before you use any of your income on variable expenses, put as much as you can afford into savings. Even if it’s just 5% this can add up over … [Read more...]

How to Plan a Secure Future When You Have a Disability

Living with a disability comes with several challenges, to say the least. However, one thing that can be particularly tricky is planning for the future. Financial planning is essential to ensure you can receive the level of care you need later on in your life. Here are some concrete ways to get your financials in order for the future. Protect Your Loved Ones with Insurance Insurance can help offset future financial burdens faced by you and your family. Long-term care insurance, for example, … [Read more...]

6 Habits of Debt-Free People

How do they do it? How do people go through life debt-free? For many of us, it may seem impossible. However, people do it all the time. What do they do that might be different from what you're doing? Let's take a closer look at the habits of debt-free people. Having More Than One Emergency Account We all know that an emergency account is important. However, people that are debt-free know that it's important to have accounts for different things. They may have an emergency account for health … [Read more...]

7 Tricks to Improve Your Finances

If you want this to be the year you finally get your finances in order, there are some tips that can help. Whether you start with a budget or pay off debt, you can improve your finances. Let’s take a closer look. Create a Budget First things first. If you want to improve your finances, you need a budget. You need to sit down and create a realistic budget that takes your goals into account. You may want to track your expenses for at least two months to determine how much you need to allocate … [Read more...]

4 Tricks to Make the Most of a Pay Raise

That day has finally come. You got the raise you’d been hoping for. But before you rush out and purchase a new car or house, maybe you should consider how this raise could really help your finances. So many people live above their means or at least live just slightly within budget. Instead of applying that raise to a luxury item, let’s look at how you should use a pay raise. Increase Your 401(k) Contributions The sad reality is that a pay raise means paying more in taxes. It may even throw … [Read more...]

How to Save Money When You Live Paycheck to Paycheck

If you live from paycheck to paycheck, the thought of saving money for an emergency fund or paying cash for a vacation may seem impossible. But, it's really not with these tips on how to save money when your budget is tight: Just Get Started It may seem overwhelming when you really think you have nothing extra, but just do something to get started. That's often the hardest step - overcoming your fear that you can't do it or it won't work. Create and Stick to a Budget Unless you are … [Read more...]

5 Financial Myths You Need to Stop Believing

There are many things we’ve been told throughout our life that pertain to money. The problem is that some of those things aren’t true. Believing these myths can lead us to make poor financial decisions. Whether it’s using credit cards for emergencies or always carrying a car payment, there are financial myths that you need to stop believing. Credit Cards Are for Emergencies Credit cards are perfectly okay to use if it’s an emergency, right? Wrong. That’s what an emergency fund is for. You want … [Read more...]

5 Reasons Why You Should Combine Your Finances With Your Spouse

Something that many people have differing opinions on is whether or not you should combine your finances with your spouse. The drawbacks that people bring up about combining your finances with your spouse’s usually boils down to trust issues. You need to be able to trust your spouse. If you do trust your spouse, you should combine your finances with your spouse. It Provides Security Combining finances with your spouse creates a sense of security. There will be times when women need to be away … [Read more...]

5 Money Talks You Should Have With Your Spouse

Money is one of the leading causes of divorce in America. The problem is that many couples don’t talk about money until things get out of hand. Soon, there are fights about money and who’s spending what. It’s a horrible situation that can be avoided. When you sit down and talk to your spouse about money, you’re able to help avoid problems. Let’s look at money talks you should have with your spouse. Where Should Our Money Go? You need to discuss where you and your spouse think your money … [Read more...]

9 Tricks to Help You Save for a House Down Payment

So, you've decided that you're ready to buy a house, and have figured out how much money you should spend on a house. Congratulations! Now comes the hard part - saving for a down payment for your house. But, it's so important since it can set you up for financial success down the road (like paying off your mortgage early). No longer is it easy to get a mortgage with no money down. Most banks want a down payment of at least 5 to 10% (although you can put down as little as 3.5% with an … [Read more...]

How to Use Sinking Funds in Your Budget

First things first. What is a sinking fund? A sinking fund is put in place to cover extra expenses that are outside your normal expenses. For example, Christmas is outside of your normal expenses. Another example is new brakes on your car. Neither of these expenses is an emergency expense, but something that is still outside of our normal expenses. The main difference between an emergency fund and sinking fund is that you know what the sinking fund is for. An emergency account is there for … [Read more...]

5 Tricks to Stop Lifestyle Creep

Something that many people fall victim to is lifestyle creep. Lifestyle creep is when you get a better job (or a pay increase) and then start spending more money. The problem? You’ll soon feel just as broke as you did with your previous salary. Let’s take a closer look at how to stop lifestyle creep. Make Better Use of an Increase in Income While you may be tempted to use your increase in income to buy a better car or a bigger house, use that increase in income to pay off debt, build an … [Read more...]

6 Tricks to Save Money on Health Care

Health care is, unfortunately, incredibly expensive. Many people often have to choose between health care and everyday expenses. This is especially true for the elderly. Thankfully, there are ways to save on health care. Whether you choose the best health insurance for your needs or be proactive, you can save money on health care. Choose the Best Health Insurance Plan for Your Needs Here’s the thing. What may work for one person isn’t always necessary for another. If you’re young and in … [Read more...]

5 Tricks to Grow Your Savings Faster

You’ve been trying to build up your savings account, but it seems like you’re not getting anywhere. This is a problem that many of us face. Thankfully, there are things you can do. Whether you find a bank with the best rates or do it automatically, you can grow your savings faster. Find the Best Rates The first thing you want to do is find a bank that has the best interest rates. Many banks will require you to have a certain balance in order to get the best rates. If you can swing this, do … [Read more...]

5 Reasons You Struggle to Save Money

We all know how important it is to save money. Unfortunately, it seems as though you never have money left over. Why? Why do we struggle to save money? Truthfully, there are several reasons. Let’s look at some of the most common reasons you struggle to save money. You’re Living Above Your Means One of the biggest reasons people struggle to save money is that they’re living above their means. If you find that you don’t have any money left at the end of the month, you need to look at what … [Read more...]

5 Excuses People Make to Spend Too Much Money {and How to Stop Using Them}

Overspending is so common in America. We have this feeling that we should have instant gratification and that our jobs entitle us to spend as much as we want. Unfortunately, this leads to people working minimum wage jobs in their 70s and 80s because they were more focused on getting what they wanted immediately. Let’s look at some excuses people make to spend too much money and how to stop using them. I Just Got a New Job It’s great to get a new job or a raise. Having more money in our … [Read more...]

When Is It OK to Pause Savings?

You’ve gotten into the habit of saving money with each paycheck. You may have even gone so far as to set up an automatic savings account. These are wonderful steps to financial freedom. But is there ever a time when it’s OK to pause savings? Yes. In fact, pausing savings during certain situations is the smart thing to do. Let’s look at when it’s OK to pause savings An Emergency Strikes If you’re just starting out, you may not have an emergency account large enough to handle roof repairs, an … [Read more...]

5 Lies About Debt You Believe

Debt is one of the most stressful things when it comes to finances. What’s worse is that we’re led to believe a number of things about debt that simply aren’t true. You may believe that everyone has some form of debt or that credit cards provide security. Let’s look at some of the lies about debt you believe. Everyone Has Some Form of Debt Everyone has some form of debt, right? Wrong. There are those that have worked and saved hard to buy everything they own, including their car and even … [Read more...]

What to Do If You Can't Pay Your Credit Card Bill

We all fall on hard times. It might be due to the loss of a job or an emergency that eats up all our paycheck. Whatever the cause, you may find that you can’t pay your credit card bill. Don’t panic. While this may feel scary and leave you feeling helpless, there are things you can do. Let’s look at what to do if you can’t pay your credit card bill. Dip Into Savings If you have an emergency fund, you may need to dip into it to pay off a creditor. Be sure to keep a small amount in your … [Read more...]

Why Your Budget Isn't Working

You've created a budget for you and your family, but for some reason, it just doesn't seem to be working for you. Each month, something comes up to ruin your budget, and you either go into debt or drastically have to cut another budget line item to make it work. While you do have to be a little flexible on your budget, since you may occasionally have categories where you spend more and categories where you spend less, you don't want your budget to be a disaster every month. Otherwise, … [Read more...]

Why We Switched to a High-Deductible Health Plan

It's open enrollment season for health insurance at many employers. I'm grateful that our family has health care insurance, but there are so many options available that it can be difficult to know what to do. Several years ago, my husband and I decided to switch our family's insurance from a traditional insurance plan to a high-deductible plan (with a Health Savings Account - HSA). For us, it's been a good switch and here's why: We save money While technically we still pay the exact same … [Read more...]

5 Ways to Prepare for a Personal Financial Crisis

None of us expect to ever have things in our lives be turned upside down and our finances totally drained. As much as we’d like to pretend it doesn’t happen though, it does and it happens every single day. Every single day, families find themselves in a financial crisis that they never expected. While you can’t prevent a financial crisis from happening, you can prepare yourself, your bank account and your family for them. Make absolute certain that you have an emergency fund – Having even a … [Read more...]

How to Sabotage Your Savings

Of course you don't want to sabotage your savings! But, perhaps you're accidentally doing some of these things without realizing it, which is keeping your savings from building up as quickly as you'd like. How to Sabotage Your Savings: Don't actually have a Savings Account - If you don't keep your savings separate from your checking account (spending money), it's far more likely that you'll just spend it without thinking about it just because it's there. Set up a separate savings account … [Read more...]

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