Do you ever wonder Why Do You Need an Emergency Fund? It’s easy to wonder if this is important, but also how to make it happen. We have some tried and true reasons and tips here for you to understand more about why an emergency fund is a necessity no matter what your current financial situation may be.
Why do you need an emergency fund (part 1) ?
As some of the readers may have noticed, my regular series “How to thrive and not just survive under $30,000 a year” has not been around for a few weeks. One of the major reasons is because of a hard financial lesson I just learned. Most of the information in my blog posts comes from my own personal experience and doing a lot of research to figure out how to run the “business” that is my family the best I can. I have always been of the opinion that you shouldn’t spend money that isn’t yours (i.e.. credit card debt). Over the years, I have learned that building credit is equally as important as paying your debts. For that reason, we have embraced using credit cards in a controlled way.Continue reading
After sharing with you about my own emergency fund needs, I am now ready to help you learn How To Start Building An Emergency Fund as soon as possible!
Last week I talked about creating an emergency fund and why it is so important. Now let’s talk about how to jump in and get started.
How much should you save? This is an easy, yet highly individual question. Depending on how out of out of debt you already are and what the job market is in your field and area. Generally I would say 3-6 months is a safe bet, but 6-9 is probably best. Take a hard look at your budget and decide what your needs in an emergency savings fund. What could you drop? What would be added in? Now figure out how many months you are saving and start planning! For our family, we have to repay our “emergency” emergency loan from family first, then start in on building a future fund so we aren’t stuck again.
Right now you may be wondering why it is important to start thinking now about next years start of the school year, but if you’re thinking frugally, you already know the answer. Buying during sales cycles always save you money. I purchase a lot of supplies for the next school year well in advance. The only things I don’t purchase in advance are our backpacks and lunch boxes (if you have kids you know how quickly their opinion on those things change). Pencils, hand sanitizer, and filler paper never change.
What to buy and when-
This is a good time year to stock up on things like disinfecting wipes, Kleenex, and cold remedies because it is after cold and flu. It is also good time to check out after Christmas special sales in hopes of finding things like pencils and craft supplies very cheap.
After Valentine’s Day sales will be a good time to also stock up on things like pencils, markers, crayons, and stickers.
This is a good time to pick up things like Ziploc bags and storage containers because spring cleaning is in full effect.
This would be a good month to find things that are reusable and/or biodegradable because of it’s proximity to Earth Day. Also, after Easter sales are going to provide plenty of opportunities to find supplies as well.
Between Mother’s Day, Cinco de Mayo, and Memorial Day there will be plenty of themed items that will go on sale after holidays. In particular, look out for lots of snack items that can be used in lunches in the fall (fruit gummies, granola bars, chips, and cookie packs).
After Father’s Day you will find a lot of deals on office supplies. Otherwise, not many of the sales will apply to back-to-school.
This is when you will start to see a lot of the traditional back-to-school sales starting. Start keeping an eye out for coupons that can be used next month to coincide with the sales.
This is when the sales should be starting in full force. You’ll be able to find a lot of the clearance sales starting at the end of this month because believe it or not, most retailers are starting to look toward Halloween. This is a great time to stock up for the following year.
This is a great time of year to stock up on breakfast items. Also, this is when the last of the school supplies will be on clearance for the best prices. There will not be much selection, but you can definitely get the most amazing deals.
Because Halloween is a big time to buy things in bulk to hand out as treats, you can often find snack packs a really great deals during Halloween sales. Also the last of the summer clearance items will be at their rock-bottom prices during this month.
As the holidays are getting into full swing, so is Black Friday. This would be a good time to look for electronics for the upcoming school year. Laptops and calculators will be at their cheapest.
I know back-to-school time can be overwhelming for a lot of reasons, but preparedness will help it from getting out of control and breaking too much in your budget. There is no reason to break The bank I’m back to school supplies if you plan ahead.
Part 2 – Basic Home Budgeting
Part 4 – How to Not Spend Money
Part 6 – Money Management Skill
Part 7 – Why Couples Should Talk About Money?
I am a stay at home mom and happily married to my husband Tom. I have a five year old daughter and a two and a half year old son. I grew up in Orlando, but went to school in New York City and lived in Los Angeles before moving home to raise a family. I have worked in the film industry since the early nineties, and for over a decade with the Florida Film Festival. I also spent many years working in marketing with Glaceau and Honest Tea. But, I am happiest at home building my family.
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One of the most important parts of living on less is thinking like a business person. Come up with a business plan for your business. Your family and your life is YOUR business. Treat it that way. The secret is to Plan, Plan, Plan.
If you just got a tax refund and you have been living lean in an effort to get ahead (or simply stay afloat) your first instinct may be to splurge… But, remember when I mentioned the lottery and all of those financial talks? When people first get a large sum of money the first thing they want to do is SPEND. A smart person knows that the first thing you do is stop and THINK. How to build wealth? How can you maximize this money? How can you grow this money? How can you make this money work FOR you? Whether it is $100 or $10,000 the first thing you need to do is make sure that you know where the money that you owe that isn’t yours is at.Continue reading