Get an Emergency Fund

Every [tag]financial advisor[/tag] and [tag]debt reduction expert[/tag] will say you need an [tag]emergency fund[/tag]. Some like [tag]Dave Ramsey [/tag]say you need $1000 in the [tag]bank [/tag]before you start your debt reduction [tag]snowball plan[/tag]. Others like [tag]Liz Pulliman Weston[/tag] will say $500 is good. I agree with Ramsey in principle but the reality is most can only afford to find an extra $500, so I say anything you can put into the emergency fund will help when “[tag]Murphy’s Law[/tag]” hits.

Take it from me when you don’t have the [tag]money[/tag] is when “Murphy” will show up. So Weston gives a couple of great ideas on how to start up and fund your emergency fund:

• Tax re-fund
• Don’t buy any thing accept for the necessities for a month and put the saved money away
• Sell your stuff. Yard sales, e-bay, sell your stuff for cash!
• Save your change. A penny saved is a penny earned
• Go through your bills and cut out services you don’t need.

We have done all of the above to get more cash into the house hold. The most recently I called my cable company and was able to cut $20 a month or $240 a year. We are looking at the cell phone next.

Again when there is a will there is a way. So make it happen.