I came across this concept a few times while reading. The truth is that you never know when a problem can happen. When a problem happens, you want to completely focus on resolving the problem. You don’t want to split focus between financial matters and the problem at hand.
Why Didn’t They Teach Me This in Schools: 99 Personal Money Management Principles to Live By was written by Cary Siegel. It’s a great book. Having an emergency fund was one of the principles.
Schools focus on socialization and not financial survival. One purpose of school is to get you ready for adulthood. Your true goal is not this. Your goal is to survive financially regardless of what comes up.
I work for a large company. Working for large companies has benefits. One benefit is steady employment. I’ve been at my company for eleven years. Over the years, I’ve been able to set up a contingency plan. The economy may take a turn down or someone in the family gets sick, you never know what will come up.
For us, someone in my family got sick. My son needed a transplant. We were fortunate we caught his failing organ early, and we were extremely lucky. My son required 24 hour care. My wife and I both stopped working for three months. For this crazy and stressful time, we had no concern about money. How did we do this? We have an emergency fund. Image here
The hardest part of creating an emergency fund is starting. Good news, the first step is hard, but steps after become easier. I’m going to make this easy. Let’s make it simple by created a very simple goal.
You should start small. Starting with a goal of $100 is a start. No, you will likely not be able to live off $100. Why start with $100? It’s a small achievable goal. You have to start small. This will increase your chances of following through and building an emergency fund.
You should have a small goal that you can think of as a small step. For example, let’s say you save $2 a day. This is a small incremental step if you make $100 to $200 a day. Let’s say you love coffee from your favorite shop. You can stop drinking coffee or reduce your consumption from your favorite shop. Instead of buying the triple espresso you like, just get a regular cup of joe. This can be your incremental step towards your goal.
After you reach your goal, set another one. If you don’t do this you can run the risk of being stagnant in growing your emergency fund. If you’re at the finish line of a marathon, what’s your motivation to keep running?
Note: This is a repost from Steem.it. Not all my readers are on Steem.it yet.
Why Didn’t They Teach Me This in Schools: 99 Personal Money Management Principles to Live By was written by Cary Siegel. It’s a great book. Having an emergency fund was one of the principles.
Schools focus on socialization and not financial survival. One purpose of school is to get you ready for adulthood. Your true goal is not this. Your goal is to survive financially regardless of what comes up.
My story
I work for a large company. Working for large companies has benefits. One benefit is steady employment. I’ve been at my company for eleven years. Over the years, I’ve been able to set up a contingency plan. The economy may take a turn down or someone in the family gets sick, you never know what will come up.
For us, someone in my family got sick. My son needed a transplant. We were fortunate we caught his failing organ early, and we were extremely lucky. My son required 24 hour care. My wife and I both stopped working for three months. For this crazy and stressful time, we had no concern about money. How did we do this? We have an emergency fund. Image here
Easy to start
The hardest part of creating an emergency fund is starting. Good news, the first step is hard, but steps after become easier. I’m going to make this easy. Let’s make it simple by created a very simple goal.
What should your goal be
You should start small. Starting with a goal of $100 is a start. No, you will likely not be able to live off $100. Why start with $100? It’s a small achievable goal. You have to start small. This will increase your chances of following through and building an emergency fund.
Be incremental in your goal
You should have a small goal that you can think of as a small step. For example, let’s say you save $2 a day. This is a small incremental step if you make $100 to $200 a day. Let’s say you love coffee from your favorite shop. You can stop drinking coffee or reduce your consumption from your favorite shop. Instead of buying the triple espresso you like, just get a regular cup of joe. This can be your incremental step towards your goal.
When you finish a goal, set a new goal
After you reach your goal, set another one. If you don’t do this you can run the risk of being stagnant in growing your emergency fund. If you’re at the finish line of a marathon, what’s your motivation to keep running?
Need help?
I know, this can be extremely hard to start. The truth is that we all need help sometimes. The good news is that you don’t have to get another job to create an emergency fund. You just have to start your fund. You may not see any opportunities to save. Let me help you get there. Just ask for help in the comment section.Note: This is a repost from Steem.it. Not all my readers are on Steem.it yet.
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