Nov 22, 2018
Are you one of the ⅔ of Americans that can’t cover the costs of a $1000 emergency? That is such a scary number, but it’s not surprising given that half of Americans live paycheck to paycheck. To add insult to injury most of us are living above our means. There is a constant pressure in our society to live beyond our means. From advertising to social media to simply talking with friends and neighbors we feel a constant pressure to keep up with everyone else. But if you don’t start saving now you’ll miss out on the opportunity to feel financially secure in the future you could even miss out on the opportunity to stop working and retire. Listen to this episode to hear how easy it is to start a life tax fund, your finances will thank you and so will your future self!
No matter your financial situation there are always choices you can make to better it. There are simple things you can do right now to create a better financial situation for yourself. One thing you can do is to start a bridge job. If you are not quite making ends meet, then take on a little extra work or even start a blog. The next thing you need to do is start living below your means. Don’t panic, it’s easier than you think! Inventory your spending habits. Start with the big stuff and identify what you can change. Next, check your discretionary spending and figure out what you spend on clothes, travel, lattes, and eating out. Listen in to hear what else you can do to start living within your means.
First off, what is a life tax fund? A life tax fund is a small savings account to help out on those unexpected things; like a speeding ticket, getting your car towed, or having to take your pet to the vet. These things happen to everyone and they always seem to happen when we are least prepared. But if you keep charging things like that on a credit card then you’ll be paying for them forever. The first step to take is to open a free savings account at your bank. You can start depositing just $50 a month. Listen in to this episode to hear how to set it up in a way that you won’t even notice!
Stuff happens. We get in fender benders, get sick, things break, etc. When (not if) a curveball comes you will be ready for it if you have a life tax fund. If you aren’t prepared with a little extra cash on hand then it can really set you back. When you aren’t ready for an unexpected financial hit it can take months or even years to recover from. Having a life tax fund ensures that you won’t charge it to a credit card or worse: take it out of a retirement account. Find out how to start being financially responsible by creating a life tax fund on this episode of Worth It.
Debt is considered a disease now in America which we are told to avoid it at all costs. While debt is something you do want to steer clear of, until you have a fund for emergencies, you shouldn’t worry about completely paying off your debts. Of course, you should continue to pay your minimum payments, but until you have a complete life tax fund, don’t worry about paying off debts completely. Funding a life tax account is the most important financial step you can take right now. This is rule number one of personal finance. You can’t plan any other financial goals until you achieve this one. Discover how to reach this essential financial goal by listening to this episode of Worth It.