The Emergency Fund Re-examined

Jun 24, 2014 by

The Emergency Fund Re-examined

Practically every financial planning and personal finance book you’ll ever read advises you to start an emergency savings fund, or rainy day fund as some call it, to meet unexpected financial emergencies, as one of the first steps you should take to build wealth. Some advise a fixed dollar amount, such as $500 or $1,000, be set aside for financial emergencies. I’ve seen recommendations ranging from $500 to $12,000. Others recommend saving a certain number of month’s income for financial emergencies, such as three month’s income, six month’s income, or as much as twelve month’s income. Still others suggest setting aside a certain number of month’s living expenses, such as three month’s living expenses, six month’s living expenses, or even twelve month’s living expenses, to meet unexpected financial emergencies. So… With all this conflicting...

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Plan Now to Avoid Future Financial Disaster...

Jun 24, 2014 by

Plan Now to Avoid Future Financial Disaster

It’s tough to get by financially in today’s fast-paced life.  With mortgages, car notes and massive amounts of credit card debt, most people struggle to get by from month to month.  With most people doing what they can just to pay their bills, few people are prepared for the unlikely event of a financial disaster. They come in many forms; a storm like Hurricane Katrina, a loss of job, or a sudden illness can break anyone who isn’t prepared for an unexpected interruption in their financial life.  But it isn’t all that difficult to make preparations that will help you in times of a money crisis.  All it takes is a bit of planning ahead of time. Here are a few things that will help you be prepared for the unexpected: If you don’t...

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Building an Emergency Fund Needs to Be Part of Your Financial Planning...

Jun 24, 2014 by

Building an Emergency Fund Needs to Be Part of Your Financial Planning

None of us have the ability to foresee the future or predict the hurdles which lie ahead of us. This makes building an emergency fund a financial priority. Building an emergency fund is healthy for your financial well-being, since you’re rarely given advance notice of a setback or an accident which will keep you out of work for an extended period. It is also a safety net that can save you from bankruptcy or severe financial hardships in the event of an unexpected change in your income or expenses. Housing a small rainy day fund should be a vital part of an individual’s financial goals. This is of high importance if you don’t already have readily available funds in your account for covering any unanticipated expenses. They provide financial security because they give you...

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Be Financially Prepared For an Emergency...

Jun 24, 2014 by

Be Financially Prepared For an Emergency

A little planning now can help you handle a natural disaster or other emergency. Many Americans have focused on their need to be prepared in case of an emergency. Very few, however, consider financial preparedness in their plans. From keeping an evacuation box with important documents to setting up an account with emergency funds, preparing now can be the difference between financial security and financial crisis. These simple tips from financial experts at Savemoneyliverich.com can help anyone prepare financially for a natural disaster: Conduct a Household Inventory – Create a household inventory for items of significant value and locate originals of important financial and family documents. Store original documents in waterproof bags in a safe deposit box or durable “evacuation box” and photocopies in a safe place. Use a CD to back up key...

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Are You Living Beyond Your Means...

Jun 24, 2014 by

Are You Living Beyond Your Means

You’ve worked hard all day and come home at night, only to discover that you can’t get comfortable in your own bed. You toss and you turn for well over three hours. As 3a.m. approaches, you finally go to sleep but the alarm sounds all too quickly at 6 a.m. It’s time for you to go to work. Day two comes and you’re off again to the usual rat race. You repeat the same pattern once you get home. Later that night you lay in bed, thinking how you’re going to pay all of these bills. Despite your best efforts on the job, including overtime, it doesn’t seem to be enough. What can you do? Who can you to turn to? Does this sound like you? Are you having sleepless nights because of your...

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A Look at Personal Bankruptcy & What to Expect...

Jun 24, 2014 by

A Look at Personal Bankruptcy & What to Expect

One of the most difficult decisions that you can face is whether or not to file for bankruptcy. For individuals, there are basically two types of personal bankruptcy, which includes Chapter 7 and Chapter 13. Designed to give the filer a fresh start in life by wiping out certain debts, a Chapter 7 bankruptcy will rid the filer of credit card and other unsecured debt. A chapter 13 bankruptcy, on the other hand, is a court-approved payment plan in which the filer is required to repay a predetermined percentage of their debt. The determination of which chapter to file will be based on the filer’s disposable income, if any, after paying their necessary monthly bills. When many people file for bankruptcy, their first thoughts are of their assets and whether or not they may...

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