Yesterday I talked about what happens when you are unprepared. Today I want to talk about what happens when you are prepared; and catastrophe strikes. Saving and budgeting are very important, but often they go overlooked. We get to accustom to our jobs being there for us. When in reality; they’re very unstable.
Recession has proved that to many unfortunate people. Employment is here today; and gone tomorrow. By saving, budgeting, and keeping your head straight you can get through tough times though!
You may be asking what budgeting has to do with anything if you have no money left. Well, when I say budgeting I mean learning to divvy your income appropriately. If you constantly find yourself with only $20 to your name after paying your bills every month you’re living very dangerously. Your budget needs some attention.
If you don’t have that safety net every month and an important cost like a vehicle repair comes up you could be in trouble. If you want to get your budget in order you first need to analyze your bills, and see where you’re spending money. If you need a little help Mint offers a great tool you can train to budget for you! It will analyze your accounts, and tell you where your money is filtering from your wallet.
Start by identifying your big spending. Eliminate things you rarely use or don’t really need. Unused expensive gym memberships, magazine subscriptions, extra uwatched TV channels, ect. These things are putting a slow drain on your pocketbook, and sucking up your savings. You’ll be amazed how much money you have without these things!
If your money problem is your housing situation you may need to find something cheaper. Buying housing you can’t really afford is never a good thing. If you’re in a mortgage; selling is probably not an option right now. So, you’ll have to cut other big expenses like utilities.
Now, that we’re budgeted we know exactly how much money we need every month to live. This is important, because we need to save this much money! Most recommend you save at least 6 months worth of income in case of disaster. Keep this money put away somewhere you can get to it if need be.
If you lose your job or fall on tough times this will provide you with 6 months of normal living resources. If you can cut costs then it will go even farther for you in the event of income loss. Recently I had some severe medical problems, and was out of work for 3 months. I had some sick time pay, but it didn’t last but for a bout a month.
Thankfully I had enough savings, and low enough budgets to see me through the rest of my down time. I need to re-coup now, but that’s what it was there for! It did its job for me, and I need to get back on track. Life will throw you against the wall if you let it, and I’m trying my best to be prepared. Now, I’m working again and I can get back to saving.
Originally posted 2010-08-11 12:02:55. Republished by Blog Post Promoter
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