Expect The Unexpected
If 2020 taught us anything, it was to expect the unexpected. That being said, let’s talk about a couple of things you can do now to prepare for the unexpected.
- Have an emergency fund. Start with the goal of having at least $1,000 in a savings account just for emergencies. Whether this means putting $1,000 in all at once or breaking it into smaller chunks, the goal is to start saving. Make it a priority.
- Keep your spending in check. Think in terms of “needs vs. wants.”
- Needs – Food, water, clothing, and shelter are a few basic necessities. They are the things we need in order to survive.
- Wants – The latest cell phone, the newest clothing trend, the newest car, vacations, and even dining out can be examples of wants. There is nothing wrong with those things, but they have to be viewed in terms of your budget and what you can afford. Can you put off a want for now, and save for it?
- Use credit cards wisely. Credit cards can be a good tool if used correctly.
- Don’t charge more on your card than you can afford to pay back each month.
- Don’t become dependent on a credit card for unexpected expenses. This is where having an emergency fund will come in handy.
We know things can and do happen, but preparing ahead is what turns emergencies into inconveniences. If you’d like to schedule an appointment with our Certified Financial Counselor, please visit our website.