Daily Dose #24: Watch Out For Your Money!

  1. IMG_1057 Sad DogPlan for the Unexpected! What would happen if your yearly ski trip to Veil turned into a broken leg, dislocated shoulder and emergency surgery that kept you out of work for 6 months?  Would you be okay financially?  Crashing into a tree on the “Black Diamond Slope,” isn’t covered under Workman’s Comp., so how would you pay for everything?  We know you have adequate health insurance because living without it would be CRAZY! There are always unexpected costs that arise in life.  Many wealthy, professional athletes are just one broken arm away from poverty because they have no emergency fund and are spending more than they make.  The minute you take that first job, move out of your parents’ home and start your incredible “Millennial Life,” set up an emergency account that you add to monthly. Whatever your situation, start now! Even adding $100 a month will help.  Set it up so that the money is taken out of each paycheck or bank account automatically and then forget it’s there!  Don’t use it to supplement your spending or to cover minor emergencies like a flat tire or visit to Urgent Care.  Only use this account for large emergencies that could potentially ruin you financially.  The recommendation is to always have at least 6 months of total living expenses available in case something unforeseen should happen.  Some financial gurus even recommend having a short term and a long term emergency fund. Either way, setting money away for the unexpected is like insurance for your money, and should be a large component of your financial plan.

 

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