How prepared are you to weather a financial storm?
If you’re like most people, you could easily run into a problem if you have as little as a $500 expense come up. in fact, close to 60% of people would have a problem with an unexpected expense. Source
Unfortunately it isn’t a matter of if, but when trouble will strike. An unexpected expense could come from something as simple as needing to replace a washing machine, having the AC in your car go out, or anything else.
For this reason, I’ve always believed that it is good to have at least a $1,000 in reserves. Many unexpected expenses can easily reach that thousand dollars.
Saving a thousand dollars may seem like an insurmountable task. However, if you break it up into a small sections, it makes it easier to complete. For example, if you can set aside $50 a paycheck, then within a year, you’d have the $1,000.
It may not seem exciting. However, knowing that you have money in the bank, or under your mattress, can reduce the amount of anxiety you experience. i.e. your stress level will much lower, and it will be an easier life to enjoy because you don’t have financial fear hanging over your head.
Leave a Reply