Getting Started….

Organization in all aspects of life is less stressful, so once a realistic budget is settled, and you’re moving along smoothly with it, set up two accounts: One for Emergency Savings, and one for 6-12 Month Income Reserve.

Each is as important as the other, and so, should be added to consistently until your goal for each is reached.

The Emergency one is for just that.  Should an emergency arise (and they do), you should have a $1,000 – $3,000. account set aside so you can pay the bill for the emergency when it comes due…. dental, new tires, plumbing catastrophe etc.

The 6-12 Month Income Reserve is an account which will get you through 6-12 months should you find yourself without an income…. this, too, does happen.  Whether it be a medical emergency, one that you find yourself out of work for a while, or if you are a caretaker to a family member for a while. And since we have all seen what a pandemic can do to job loss, you will have money set aside to pay your monthly expenses.

These accounts are to be used for…..only…..that particular reason.

This can truly be done.  You will find yourself to be less stressed out when, should the need arise, you will be financially covered to pay for – the cost of the emergency, or – if you find yourself out of work, you can still pay for rent/mortgage, heat, light, phone, food.  You notice take out orders, entertainment of any kind or any other non-essential spending has not been mentioned.  This Income Reserve Account is for essential bills.

And remember, when you do need to use the money from these account(s), they should be replenished as soon as possible.

Life happens. Be prepared.