Emergency funds can come handy in a financial pinch. Therefore it is always a good idea to keep three to six months worth of living expenses in a separate account. Here are other reasons why creating an emergency fund can be worth your while – How much do you need?
The best way to start your efforts is to come up with a goal. For example, the amount in your savings account will depend on your expenses and income. When it comes to emergency funds, a general rule of thumb is to save enough to cover four to six months worth of living expenses. And the larger your family is, the more will you have to save. Calculate your Monthly Expenses
Make a list of priorities that you have to pay for every month. This may include the price of your groceries, utilities, housing costs, debt payments, insurance and any other bills that you absolutely have to pay for.
For instance if your monthly expenses come up to $3,500 for three months, you will need set aside $8,500 in your savings account to get by in case of emergencies. And remember, the cost of luxuries such as vacations, dining out or fancy dresses should not be included in an emergency fund. How much can you afford to save?
You also need to be realistic in how much you save. Take a look at your current finances and calculate how much you can afford to set aside for your emergency fund each month. It doesn’t matter if the estimate is smaller than you expect. Any amount is fine if it is all you can afford to save. Create a Liquid Account
Liquid accounts are the best resources for emergency funds. These are financial accounts that can easily be accessed. Your liquid account may be a regular savings account at a credit union or a bank that provides some return on your deposit. You can also withdraw funds from your liquid account at any time without incurring any penalties. Repay Debts
This goes without saying. Your emergency fund will be useless if you keep withdrawing from it to cover debts. Remember, every dollar that you pay in debt is money that can be deposited into your savings account. In other words, paying off all of your debts should come first in your list of priorities.
Consumers also tend to spend more if they use credit cards. If you happen to own one, it’s best that you use it sparingly. If you absolutely have to use your card, make sure that you utilize it for planned expenditures such as grocery shopping or medical appointments.
And finally, don’t quit before you even start. You might have failed to establish or maintain a savings account before but that does not mean that your efforts will not bear fruit this time around either. Analyze your finances, learn from your mistakes and adopt proven financial strategies that will kick your saving efforts into high gear.
Adults can typically pack away winter clothes when spring arrives and the use them the following year. However, children will often need the next size up the next cold season. Here are some great tips to still look fashionable, stay warm, and not spend a fortune doing so.
Step one, layer your clothes! You can choose fashionable colors and prints, get them in cheap long sleeve shirts and layer them. Shop smarter, not harder! You can get items like sweatshirts and undershirts at the dollar store, and then layer them with more fashionable accessories or tops. Have a fashion swap party; this ideal for kid’s clothes. Mom’s can get together and bring clothing that no longer fits their children then swap around. Be sure you have the staples to survive the cold! The majority of body heat is lost through the head, pick up a warm hat, thick socks, and winter gloves. Spending a little more on something that is classic, and won’t go out of style will save you in the long run like a jacket, or plain sweater. Finally, only take cash with you. If you have a set budget and only buy things with cash you will be less tempted to splurge on expensive clothes.
Now, there exist a variety of different ways that a person may save their hard- earned money on their collection of great music. There have been a huge amount of changes since the days when compact disc were all the rage. Now there are a plethora of different ways that individuals can hear their favourite tunes.
You will see a lot of places on the Internet, such as web sites like YouTube, that allow people to stream music right away. People really don’t want entire albums anymore because they don’t need them. Now, people want to hear their favourite song or songs from an album and that’s become really easy for people to do. Piracy in music has also become a huge problem for the people that produce the tunes we listen to. Now, people want to know how they can obtain music, legally, while at the same time saving their cash.
Well, for one thing, let’s take a look at the types of media that are available for people to hear their music on. You won’t find compact disc players anymore when you go the store. You will now find various types of media players that play sound files called mp3s. It’s a good idea to purchase music in digital form because you will get better value for your money.
It can be very frustrating and disheartening when you go shopping at the grocery store these days. Looking down at the receipt after you have just made a trip to the grocery store can feel like a really bad thing. There are ton of ways to save money on your grocery shopping if you know the tricks. Don’t spend your money on makeup or lotion items when you are the grocery store. The prices of these items are often hiked up to get you to pay more because it’s convenient. Don’t spend money on any kind of items for a party at the grocery store either. There are other stores, like dollar stores, that charge a lot less money for items like this. Go to your local hardware store to buy hardware type items. Don’t be tempted to purchase these at the grocery store just because you happen to be there and it seems convenient. It is going to cost you in the long run to do this. You should try to avoid buying any kind of item at the grocery store that is not food. These things can be purchased elsewhere for much cheaper than you would be paying at the grocery store.
