Teaching you to embrace today while making yourself a millionaire!

I wish I would have understood how easy it is to become a millionaire by starting to save small amounts of money when I was younger...

I feel compelled to share the simple concepts you can apply today....


24 November 2009

Tuesday's Tips

Hey everyone! Time for another post based on real situations from my life. This week my situation is a bit depressing, but because of preparedness everything is going to be just fine.

1) Have at least 3-6 months of living expenses saved. Put this money in a fund that you never use. It's best to start by figuring out absolute necessities that need to be paid. Mortgage/rent, loans, medication, and utilities. Also add in another hundred or two for food and/or other necessities. If you have credit card debt, which I recommend avoiding, figure out the minimum payment. Start an account that will give you instant access to the money if needed, and then forget you have it. I have money deducted from each paycheck and automatically deposited into my account. That way I don't have to worry about spending what I'm trying to save. I also put part of any bonus money or tax return money into the account so I don't blow it all.

2) This money will be useful for any big event. This event could be anything: a large medical bill, job loss, or car crash. It could be any number of other things, but this money should be for emergencies. If you rack up lots of credit card debt and use your savings then there might be bigger problems that you need to address. This needs to be emergency only money. In my case my girlfriend lost her job recently. However we both have savings for just such an occasion. We won't need to worry about making rent or utility payments because we have our extra savings that we never spend.

So just remember to be prepared for any occasion that could arise. You'd be surprised that you'll save up a pretty large sum if you really want to. And should something come up that will cost a large sum, you'll have your emergency stash ready to go.

I'm on a 168 hour break so until then Stay Tuned...

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