Do You Have An Emergency Fund

Life is full of surprises.  One day we are making ends meet with something left over and then a day comes when all of that can change.  With the unpredictability of day to day living, having an emergency fund saves worry over finances when you are already worried over other things.

What is an emergency fund?  Well, it is a certain amount of money that is set aside for situations that we cannot foresee.  It could be an illness in the family, an accident, car repairs, or a natural disaster.  Whatever it is, such tragedies can deplete a bank account and lead us into financial disaster.  

The thing about life is that unforeseen circumstances can happen to anyone and everyone.  No one is exempt from them.  The best we can do is to prepare in advance so that we are not focused on money.  An emergency fund is roughly equal to several months’ worth of income.  Ideally at least three months' worth of total household income is a good amount to have put away. 

That is a lot of money.  When you add up the income of everyone in the house who holds a job, we could be talking about $10,000 at least.  It is hard for most people to save a little, let alone that much money. 

Don’t let this stun you into doing nothing.  Starting anywhere is better than not starting at all.  If you can manage to save fifty dollars a pay check, then do it.  Sure, it will take a while to build up an appreciable fund, but you will still have money put aside in the event that something happens. 

The emergency fund is tapped when our regular finances can’t handle the strain of an incident.  Now this is not to be used because we are living above our means and overshooting our budget every month.  But, then again, if we are living beyond our means, we wouldn’t have any money to contribute to an emergency fund.

One way to build your emergency fund when money is low is to use bonuses, raises, and tax refunds.  Instead of buying extra goodies with that raise, take the extra money from the check and add it to what you are already putting away.  A tax refund will build up that emergency fund quickly. 

An emergency fund saves headache.  Costly car repairs can set you back several hundred dollars.  An emergency fund will keep you from having to choose between having your car back and having your lights on.  And when a loved one is ill, you can concentrate on them and not think about how you will pay the bills.

Start an emergency fund today.  Whatever you can contribute is good.  Encourage the entire family to help out.  While you are building a cushion for possible emergencies, you are also teaching them to save money.

Seven Steps To Make (or Break) A Habit

We all have habits, some good and some not so good. These are behaviors that we've learned and that occur almost automatically. And most of us have a habit we'd like to break, or one we'd like to develop.

For most people, it takes about four weeks for a new behavior to become routine, or habit. The following steps can make it easier to establish a new behavior pattern.

1. The first step is to set your goal. Especially when you are trying to stop or break a habit, you should try to phrase your goal as a positive statement. For example, instead of saying "I will quit snacking at night", say "I will practice healthy eating habits". You should also write down your goal. Committing it to paper helps you to commit. It can also help if you tell your goal to someone you trust.

2. Decide on a replacement behavior. (If your goal is to develop a new habit then your replacement behavior will be the goal itself.) This step is very important when you are trying to break a habit. If you want to stop a behavior, you must have a superior behavior to put in it's place. If you don't, the old behavior pattern will return.

3. Learn and be aware of your triggers. Behavior patterns don't exist independently. Often, one habit is associated with another part of your regular routine. For instance, in the snacking example the trigger may be late night television or reading. You automatically grab a bag of chips while you watch. Many people who smoke automatically light up after eating. Think about when and why you do the thing you want to quit.

4. Post reminders to yourself. You can do this by leaving yourself notes in the places where the behavior usually occurs. Or you can leave yourself a message on the mirror, refrigerator, computer monitor or some other place where you will see it regularly. You can also have a family member or co-worker use a particular phrase to remind you of your goal.

5. Get help and support from someone. This is kind of obvious. Any job is easier with help. It works even better if you can form a partnership with someone who shares the same goal.

6. Write daily affirmations. Write your phrase or sentence in the present tense (as if it were already happening), and write it ten times a day for twenty-one days. This process helps make your goal a part of your subconscious, which will not only remind you to practice the new behavior, but it also keeps you focused and motivated.

7. Reward yourself for making progress at set time intervals. Focus on your goal one day at a time, but give yourself a small treat at one, three and six months. The rewards don't have to be big or expensive, and you should try to make it something that's associated in some way with the goal. Doing this provides you with both incentive and extra motivation.

Following these steps is no guarantee of success of course. Depending on the habit it may take several tries to finally make the change. But if you stick with it, you can do it. Good Luck.