Emergency funds. Safety funds. Cash on hand. Whatever name you call it, we settle our financial affairs in cash.
I’ve stated emergency funds are the center piece of having your financial life together. It’s there in case things go wrong or something major breaks and needs replacement. It’s there to prevent you from going into debt to pay for something that needs immediate replacing.
Whatever your emergency fund is designed for, be sure to include a little extra on top to handle routine maintenance on your home. Continue reading Home Maintenance Fund
It’s 2am. Do you know where your finances are right now?
Is what keeping you up at night because of your nonexistent savings? Deep in credit card debt? Drowning in student loans? You haven’t started your 401k program and wonder if you have enough time to build a nest egg?
We all have these worries. I used to worry about different financial concerns constantly. Continue reading What’s Your Plan?
But the way my bank account is set up….
Personal finance is as complex as you want it to be. I suggest most people to keep it simple. It’s less to worry about, less accounts to deal with and certainly less chance for error when you need to move things around. Remember, financial products offered by banks are simply tools. These tools allow sending your money to the right place when needed.
For instance, a long standing product offered by banks that we all know and use is the checking account. This account doesn’t place a restriction on how often you access your money, other than daily spending limits via a debit card or withdrawals from an ATM machine. It’s the best tool available to temporarily park your income until you decide where it should go. Continue reading Why I Have Two Checking Accounts
The budget. The word you hear and immediately you cringe. You associated the word budget with restrictions. All you see is what you CAN’T do. But don’t think of it this way. A budget is what you SHOULD do.
Perhaps you’ve created them in the past, but never stuck with it. You simply wrote down some categories and some amounts next to them, but never followed through by tracking every dollar that comes out of your pocket and compared them to what your budget says. Perhaps you gave it a good few days, but then stopped because you thought it was tedious. Continue reading Creating a Budget