Be prepared for emergencies! 1 out of 3 Americans can’t even cover a $5,000 emergency (this is even worse now because this stat came before the economic collapse). Money management is a skill like any other and unfortunately most people in the U.S. have not been taught to develop that skill. Everyone knows they are supposed to save money, but almost no one actually does it!
Just like our Government, most people are spending more money than they are actually bringing in. Unlike our Government, you can’t take your neighbors money by force to keep paying for all of your wasteful spending. You need to take control of your own situation and stop spending money you don’t have. Stop piling on tons of credit card debt for things you don’t even really need.
Your basic plan is going to be a simple one, but one that will require you to start living a disciplined life. You either do this now or you are going to end up old and
1. Having an emergency fund
2. Paying off your debt
3. Saving for your future
I’m a big fan of the Dave Ramsey approach so I see no reason to change anything here. Your first and only goal after reading this article is to save up $1,000 for an emergency fund. This money is to never be touched, it is what it’s called, for emergencies only. If something breaks in your house, your car breaks down, etc. Start it in a different bank account if necessary, but never touch this money for any other reason.
Now, you might be thinking, how am I supposed to save up $1,000?! Glad you asked, it’s easier than you think. You can save up $1,000 by having a yard sale, getting a part time job, don’t eat out for the next month, whatever it takes! This should only take you about a month to do. This first step is an important one. It will start you on your path to discipline and you can build from there.
Get this step finished quickly because next time we are going to start tackling debt.
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