49% of Americans could cover less than one month’s of expenses if they lost their job. Frightening isn’t it? My last blog stressed that you needed to put aside at least $1,000 and then increase this to include 3 months and then 6 months of living expenses.
My wife and I had tried this on several occasions and we could never seem to put the money aside, as there was always an emergency that came up that required that cash! Sound familiar.
Right now one of my homes needs another roof. We had a new roof put on this property in 2001. The contractor is not returning my calls.
We put a new roof on another one of my properties a few months back. Thank God that we had the cash to pay for it. This is for emergencies only and we have another account for 6 months of living expenses that we are continually adding too.
It takes work and diligence. We made a game plan to sell those items we where no longer using, stop all unnecessary spending and put all of this away. You really need to make this a priority.
Look at this statistic. The average American family with a $40,000 annual income would normally have a $850/mo. house payment, a $350/mo. car payment, and an average credit card bill of $12,000. You can see what would happen if the income would suddenly stop.
The media is lamenting the fact that consumers are not spending and saving instead. It sounds as if this is bad. No way!
When my wife and I finally had the emergency fund set up and 3-6 months of income set aside, it was a great feeling and still is. It eliminates unnecessary stress.
You may think this cannot happen for you. It can. It did for us but it did not happen overnight.
Jacques
CreatingWealthThatLasts
2 comments:
Most people as you say couldn't last for long .. some not even a week ..
Well done to you both .. that you've established a principle that you're sticking to - & which saves you tress and worry over those unexpected emergency expenses, such as house rooves!
Thanks Jacques ..
Hilary - Be Positive Be Happy
This post is a great honest look as things for the reader. Most people wouldn't last very long at all. A lot of people live pay check to pay check. This is a great wake up call, I hope people hear you loud and clear.
Thanks,
Giovanna Garcia
Imperfect Action is better than No Action
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