It’s so easy to say, at least $1000, – but that of course it is not. I know that all too well. How do you get it done you wonder and why would you keep that money back if you can now live something easily through it? The moment you want to put some money aside, the temptation is of course very great to buy something nice for it, to be less strict with regard to your expenses or to get a little more shopping out of it.
It’s so important to have an emergency fund. The moment you put some money aside, you don’t feel it and you don’t feel the added value of doing that. That is also a major pitfall when it comes to budgeting. This is really part of it. Later you will also find that it’s a wise choice.
From my own experience I can tell you that it’s really nice that I have money in my savings account and only take money from it if it’s really necessary. A real emergency fund so.
Sometimes you have those times that you get one unexpected bill after the other. Amounts that don’t fall under the fixed costs. A visit to the vet and a repair to the car that come in one month at a time cannot be accommodated if you have a minimum income. You run out of money for that month right away and you just have to see how you get through the rest of the month.
At that moment I am happy that I don’t have to lie awake asking how I will pay for it. Because I always live economically and put money aside, I can happily pay these bills. Even if you only set a small amount separately each time, it does increase and it may be enough at some point to cover these unexpected expenses.
Don’t think that it’s immediately a big pot, but I have noticed in recent years that I have less money stress because of this.
The moment I have a month with more income, for example in May when the holiday pay is there, I immediately put the other money in the savings account. This way I ensure that I have no problem in the months that follow if I have an unexpected release.
It’s of course very tempting to spend the extra money on something nice. Holidays, a different car or clothing. You name it, it seems so obvious to many people that they can use this for this. It’s not called holiday pay for nothing, right? Yet I try not to be tempted, because I know that I will benefit later.
Of course you can spend a small amount on something that you would like, after all, you can sometimes spoil yourself. Watch out that you have made a limit for yourself in advance of how high that amount may be. This allows you to indulge yourself without feeling guilty.
Previously I had really sleepless nights because of my financial problems. I really don’t want that anymore and I don’t have to. As long as I make sure that the emergency jar stays filled and that I keep a close eye on the fact that it doesn’t shrink too much. Start building an emergency pot now. Even if it’s only a small amount that can be missed at a time, every bit helps. It’s better to save a little bit than to spend a little bit too much.
Are you prepared for bad times or are you unable to build up reserves? I’m curious about your comments.