EMERGENCY FUND

 

I remember as if it was yesterday, the day we finally conpleted our starter emergency fund. It was a day full of joy and celebration well you know the saying; money isn’t everything. But not having it when you most need it can be really stressful.

Yes, now I can say that my emergency fund is a blessing, but it wasn’t until a few years ago when one day we said enough is enough, we both my amazing husband and I work too hard to have nothing to show for it. And we were no strangers to the stress and discouragement that comes with not having enough money to put gas in the car or even replace a tire, maybe you never been there. When there’s too much month at the end of the money? Well that’s exactly where we come from and it is our hope that one of these days you can also say that your emergency fund is a blessing, make that your statement

We’ve all had those big expenses we didn’t see coming. That was our case That’s life. But that future (inevitable) emergency doesn’t have to stress you out.

Well one day we had this doctor’s appointment and I had to go through surgery, we went to the hospital to pre-reg. Fortunally we had get rid of Murphy and he no longer lived nor travel with us no more.

We, useed our emergency fund! 

Your emergency fund is money provides a cushion between you and all the stuff that hits the fan. We had it! We were able to pre-reg and walked out of the place with a feeling everyone should experience.




One day we decided to kick Murphy out, he knock on our door from time to time and we gladly wave our emergency fund in his face, so he goes to check on our neighbors.

Well here are four common questions about emergency funds and how to set yours up:

    1.  How much should I save? We recommend a starter emergency fund of $1,000. That’s an amount you can save quickly and still cover most issues. Eventually, you’ll want to build it up to three to six months’ worth of expenses. But that’s later. For now, focus on getting it started—and fast. Do this before you pay down debt or save for anything else. 
    2. How do I find the money for it? You never know Budgets are desinged to help you get traction and ultimately win with your moneyuntil you make one. You’ll probably find cash you didn’t know you had! Plus, you can cut back in a few areas (like restaurants and entertainment) and find even more. You can also boost your savings by selling stuff online or picking up a bit of side work.




    1. Where should I keep it? Put a category marked “emergency fund” in your budget with a certain amount you want to save each month. This account will gradually build up and be ready to cover your immediate needs—like your heater making that-can’t-be-good noises when it’s freezing outside! Keep this cash in your regular bank account, or transfer it over in a new account when it hits $1,000. It’s up to you!




  1. What happens when I’m done saving?Once you have enough saved for emergencies, focus on your other debt or savings goals. But when you use your emergency fund, be sure to refill it as soon as possible. That way, it’ll be waiting for you when you need it next (and you will!) Refer to The secret to saving money you can also contact us for more tips on saving, paying off debt  and staying out of debt. 

BUDGETS ARE DESIGNED TO HELP YOU WIN WITH MONEY

 

Unfortunately, the word budget has gotten a bad rap. It’s basically just a plan. When you budget, you’re spending with purpose, before the month begins. But many people view a budget as a straightjacket that keeps them from doing what they want. Freedom and budget just don’t seem to go together for them.

The truth is that budgets are designed to help you get traction and ultimately win with your money.

Your budget is your plan for the upcoming month. You’re planning the money you haven’t spent yet. When you keep receipts or use your online banking to see what you spent last month, you’re doing just that—looking at last month. Look forward and back—not just one or the other. If you’re already tracking your spending, the budget is just a natural next step. It should be easy for you.

And when you see that the way to spend money intentionally only works with a budget you will feel like a burden has been lifted off your shoulders and as a consecuence you will have freedom.

The number one excuse why most people don’t budget is that they have no time, and that is the same exact reason why they need to budget. You cannot afford not having a budget that will help you navigate through the days, months, and years successfully. So, you don’t have time to not have a budget, you need that and you want that. So, don’t go by what everyone else is doing or saying, have some standarts of your own and stay the course until you get the results you desire.

If this is your first budget, we want you to use pen and paper for few months and until you get to know your numbers swicht to electeonic. We recomend EveryDollar as you can download the app on any divice. By following this secuence many people say they’ve found “extra” money when they created a realistic budget and stuck with it.

 
Being realistic when you create your budget is key, as no two months are the same, and no two households are the same either.

Here are ten pointers for your first budget:

1. Budget to zero before the month begins. That means every dollar gets a name before you spend a dime of it.

2. If you’re married, you and your spouse need to do the budget together. Period. The preacher said ” . . . and you are one.” If you’re single, find someone who can act as your accountability partner.

3. Every month is different (think birthdays, vacations, car insurance, back-to-school supplies), so be sure to adjust your budget monthly.

4. As you’re budgeting, start with your most important categories first, like giving, housing, food, clothing, insurance and bills. Then, fill in the rest of your budget with your leftover cash.




5. If you’re in debt, paying that off should be a top priority. Use the debt snowballand the Dave Ramsey Baby Steps to focus your money where it has the most impact. If you need help in any of these categories: saving, budgeting, paying off debt including student loan and or mortgage we’re here to help you and will be with you every step of the way.

6. Don’t be afraid to make budget cuts. If your budget is tight, save money by canceling cable, eating out less, and shopping at a discount grocery store. You can always rearrange things next month.

7. If pen and paper (or spreadsheets) aren’t your thing, or you just don’t have them available contact us at www.redtogreeneconomy.com we can help you. You can also try Dave Ramsey’s free online budget tool,EveryDollar we use it and it is a great tool. You can make your budget and track your spending from the comfort of your smartphone! Plus, you can sync up your budget with your spouse.

8. Use the cash envelope system for as many budget categories as it makes sense. To get these again you can contact us at www.redtogreeneconomy.com and we can facilitate these to you. Our goal is to help you change your finances for the best. The envelope system is another great tool designed to help you. For example, keep paying for gasoline with your debit card, but get cash out for your fun money and clothing cash. Once your envelope is empty, stop spending! It’s the ultimate accountability partner.

9. Give yourself lots of grace. It usually takes three to four months to get this whole budgeting thing down pat. It won’t be perfect the first time, or the second. But you’ll get there!

10. Be content. You have much more than you realize. Don’t compare your situation to anyone else’s. Keep moving forward and doing what’s right for your family, remember to always give thanks 




When you are spending your money with purpose, you’ll be on the road to changing your family tree forever! Imagine your future (and your kids’ future) without money worries. That’s the beauty of a hardworking budget.

What tools are you currebtly using to create your budgets? Let us know; we’d love to hear fron you