Good day folks! My name is Terry, and I will be your personal finance expert with advice once a month for the foreseeable future. First thing you all are probably thinking is who are you and why are you qualified to give finance advice? I graduated from UNC Charlotte with a degree in finance, and I work for one of the largest financial institutions in america. To continue my quest for better financial knowledge my fiancé and I are currently taking Dave Ramsey’s Financial Peace University. And my first financial tip is going to echo one of his first and most important lessons.
Do everything possible to build up at least $1,000 in savings. What this will be is an account that you don’t touch under any circumstance except for emergencies. Unexpected things happen in life so often and they always seem to catch you off guard. Having an emergency fund is the best way to prepare for the unexpected. Car repairs, physical injuries, family emergencies; things like this seem to happen when we least expect it. And if we are not prepared we either suffer, or go into debt using credit cards to defer the obligation. But if you have money saved for times like this, you’ll be at peace financially when these things occur.
After paying for what you deem as unexpected emergencies, you should immediately make a plan on how you are going to get the balance of that account back up again. Also don’t stop at $1,000. Once you’ve comfortably made it to that mark, the next goal is to have three to six months of your income saved in your emergency fund. Again, this account doesn’t get used for a new TV, a trip to Vegas, or any other personal convenience items. It’s only for when life throws you curve balls. This will be your home run bat to knock it out the park.