265 - Planning for the Unplannable
Episode Title: Planning for the Unplannable
How can you make a financial plan for the unexpected, unplanned events in life? It’s called an emergency fund. Stay tuned for more, coming up next on The Perna Syndicate.
Ep 265 show:
Hello and welcome to The Perna Syndicate! All week we’ve been talking about the tips to foster a financially healthy future—both for young people and for ourselves. Yesterday we talked about using credit cards wisely. But what if your credit card debt wasn’t for frivolous items, but for something you truly needed?
Life hits us all with surprises and not all of them are fun ones. Surprise expenses will happen. And the only way to plan for them is to plan loosely—and as generously as you can.
That’s why everyone needs to build up an emergency fund. This is money that you sock away every month in a separate account. And it’s only to be used for those big, unexpected, unplannable expenses.
Ryan McPherson of SmartPath advises people to start with the goal of saving enough to cover one month of expenses. Bit by bit over time, work your way to saving three to six months’ worth of expenses in your emergency fund.
That can seem like a lot of money to save, but when that huge bill arrives, or you get laid off, or whatever surprise happens—you’ll be ready. And it won’t feel like such an emergency.
When it comes to personal finance, knowledge is power. Read as much as you can, follow the topics that interest you, and most of all, remember that every financial decision you make is an investment in your future. You’ve got this!
Thanks for being part of The Perna Syndicate this week! If you have a comment or question, I’d love to hear from you. Get in touch with me at MarkCPerna.com. Take care and we’ll see you back here next week on The Perna Syndicate.