August 27, 2017
Emergency Fund

The Importance of an Emergency Fund

One thing is true of life…expect the unexpected. That’s why any financial guru around will stress the importance of having an emergency fund. If you’re confused on what exactly an emergency fund should be used for, I can tell you it’s not for that 65” TV you’ve been eyeing at Best Buy when yours bites the dust. While that may seem like a catastrophic event to some, it’s not exactly the type of crisis that you’ll want to dip your fingers into your cash stash for. An emergency fund, also known as a rainy day fund, is the money you save for those unforeseen circumstances you run into in life. Your budget is made up of this everyday expenses like groceries, housing, cars etc. Your emergency fund is for those things you don’t anticipate in your budget. So when life happens and it will, you need to have money somewhere that you can easily access to cover those unexpected expenses. This is NOT money you tie up in an investment. You’ve got to keep it fluid and available. You don’t want to count on credit cards or debt to get you through when your car breaks down or the air […]
December 20, 2016

8 Must Do Financial Moves for the Young Adult

Hey, this is Justin Goodbread with bringing you 8 points that you must do if you’re just getting started. 1. The first thing we have to do is to learn self-control. You say ‘Wait a second! What do you mean learn self-control?’ Look, we’re no longer a kid anymore. I once heard a wise woman say, ‘Where you’ll be five years from now is determined by the books you read and the things you do today.’ You must take control of yourself. 2. Your financial future is YOUR responsibility; no one else’s; it’s not the government’s, it’s not mom and dad’s, it’s not mine, it’s not your brother’s, not your boss’; it’s YOUR responsibility. 3. Always know where your money is going. Have a budget; track where your revenue is going. 4. Start an emergency fund. Set aside a little bit of cash, where you can’t get to it unless there’s an emergency. 5. This is an important one. Start saving now for retirement. Don’t wait; even if it’s $25 a month. Do realize that $25 a month, over 30 years will be $75,000? Start a retirement fund. 6. Learn taxes and get a grip on them. You will […]
March 14, 2016

Can an Emergency Fund Ever Be TOO Big?

Can an Emergency Fund Ever Be TOO Big? Whether it’s on a personal level or a business adventure, most financial professionals will suggest you have an emergency fund of some type when the unexpected happens, so you aren’t left jostling to make ends meet financially. There are varying opinions on everything from the ways to build that fund to exactly how much you need have access to in those situations. However, there are times when an emergency fund can get out of control and you need to reign it back in. At a personal basis, the standard size most experts will suggest you have is a three to six month cushion* (if you have not started saving then work toward getting at least one month put back). This is not money you have invested in something you will have to pull out. This is cash on hand…or perhaps in a savings account at a bank that you can easily access. Remember you aren’t trying to build wealth on this. You are merely preparing for life, which we all know can happen at any given moment. The most important reason for having an emergency fund is to keep you from going into debt […]