morgandawn: (MoneyDog)
[personal profile] morgandawn
The next 4 years are going to be...unpredictable. There may be severe disruptions in the economy, food,  oil supply and job markets.

The only "smart thing" I am encouraging all my family and friends is this: set up an emergency fund and keep it safe. We need 3 months (better yet 6 months) of the essentials - rent, utilities, medical, car payments, gas and food. Cut back on your holiday spending and set up automatic payroll deductions into a savings account.

If you have a company that matches your retirement savings here is what I suggest

1. Save up 3 months of emergency savings. Some people say you should split your money between saving and paying off debt. Dave Ramsey suggests a different model: save $1000, then pay off debt. Do what works best for you. The most important message: HAVE A PLAN.
2. Then fund your retirement account up to the employer match (free money)
3. if you have any more after that, build your savings account up to 6 months. Or alternatively start paying off debt. Or do both. Again, have a plan and stick to it.

Speaking of credit card debt?

1. Don't use credit cards unless you can pay them all off at the end of the month (AND build an emergency fund/pay off debt/fund retirement) :
2. If you cannot pay off your credit cards at the end of each month (and build an emergency fund/pay off debt/fund retirement) : then credit cards should only be used in an emergency, not for routine purchases.

Buy insurance - if your company offers long term disability, get it. If they offer life insurance, get it (if you have family that depends on your income). These are major emergencies that can destroy families

Reading:
Saving vs Retirement vs Debt
Emergency Funds

my other money posts
From:
Anonymous
OpenID
Identity URL: 
User
Account name:
Password:
If you don't have an account you can create one now.
Subject:
HTML doesn't work in the subject.

Message:

If you are unable to use this captcha for any reason, please contact us by email at support@dreamwidth.org


 
Notice: This account is set to log the IP addresses of everyone who comments.
Links will be displayed as unclickable URLs to help prevent spam.

Profile

morgandawn: (Default)
morgandawn

March 2017

S M T W T F S
   1 23 4
5678 91011
12 13141516 1718
19 20212223 2425
262728293031 

Most Popular Tags

Style Credit

Expand Cut Tags

No cut tags