Christmas Budget Tips and Emergency Funds!
A want to share story about my sweet cat Zoey and the importance emergency funds. Recently, Zoey was outside and playing in the plants and ate a plant. Soon, she got really sick and a horrible infection. It was so bad that when she meowed, Zoey sounded like a frog. I had soon rush her to the emergency vet clinic. My poor girl had a 105 degree temperature. I was so devastated and thought I was going to lose her. It was then, I knew I had to do whatever it took to help her. With that, comes monster sized vet bills. At the same moment of freaking out I also had a blanket of peace and comfort cover me. I knew that with the help of my emergency fund, I could cover the bills. My savings account took a hit but thankfully soon Zoey felt much better. She is back to her frisky and fun cat.
Just like vet bills, emergencies come in many forms and especially in the winter. A flat tire, dead battery, a visit to the emergency room or something breaks in the house. Over the last several years, I comprehended the importance of saving for a rainy day. Back in the day, I depended on credit cards for emergencies. That is no longer the case. I believe we should have a savings account just focused for emergencies. Do you have an emergency fund? How much do you save a month for emergencies? How do you save for those unexpected times?
I am a huge fan of Dave Ramsey and his class Financial Peace. If you have not taken it yet, I highly encourage you to. He suggests starting out building an emergency fund of at least $1000.00 and do this as quickly as you can. Eventually, it is wise to have 6 months of your income saved in case you lose your job, medical issues or other circumstances.
You may say to yourself, how can I do this I don’t have any money or it’s not in the budget?
Here are a few suggestions to get you started!
Start a Monthly budget! It is a great way to tracking spending and savings. Especially right now with the holidays. Use a budget sheet for that Christmas shopping. Dave Ramsey has a few free budget worksheets on his website. Click here for the website. Dave Ramsey. Other ideas is try using Mint.com or check out Excel, or vertex as they have budget worksheets.
Keep your emergency funds separate from your regular checking out. I do this I have a bank for bills and a bank for savings accounts. Create a savings account at a different bank. It creates a change in mindset, that its sole purpose is emergencies. Sorry guys not for a taco, a new lipstick or a new sweater at Nordstrom. Emergencies only! Invite your spouse or if single a friend/family member into your budget making. They may see ways to reduce spending or ask the good questions about money habits.
Eating Out: Set a budget for eating out and reduce your meals out. We all deserve a meal out and need community time. If you're spending a lot eating out per week try to reduce eating out or at least a few less meals out. To save money, do weekly food prepping and make meals at home.
Shopping and Coffee: Oh this is a big expense. I was at Starbucks the other day and my coffee was almost $5.00. It floored me I couldn’t believe how much it was. If you love coffees out, still enjoy it but make it a once a week treat. The other days make coffee at home or take your coffees to work. For grocery shopping, make a list ahead of time and stick to it. Do your shopping when rested and not starving as you are less likely to overspend. Shopping for beauty products can be expensive. Check out some beauty boxes like Ipsy It’s as low as $12.00 a month for top of the line make up, skin and hair products. I Check out Thrift Shops like goodwill and value village. Check out your local Facebook Buy Nothing Page. It is a group of people in your neighborhood and by zip code that share items for free. It is awesome! Clothes, books, babies items, household stuff and more.
Sales and Emails: Be cautious of all the sales especially now around Christmas. Only buy if you need it. Unsubscribe from all those pesky sale emails you get in your email box. It is so easy to shop just cause you see a sale.
Be sure to have Identity Theft Protections!!! This time of year is huge for identity theft. Sign up with the 3 credit bureau, bank, employee benefits, insurance company, credit cards, or through Dave Ramsey Zander.
Money Challenge to do list!
Revamp or use a budget to track spending! (stay on budget with the holidays)
Open up savings accounts at a separate bank
Begin to save for a rain day and build that emergency fund!
Sign up for identity theft if you don’t have one.
Hope these tips help! :)
Blessings,
Lisa Hice
