Almost everyone in Austin knows someone who knows someone who was impacted by Hurricane Harvey. If a severe storm hits Austin (or you lost your job, or fell and broke your leg or need a new transmission) can you handle that kind of emergency without using credit cards?
The purpose of an emergency fund is to have cash quickly available to cover the unexpected events that will occur in your life. For instance, suppose Austin gets hit with a bad storm and shingles flew off your roof and now there are leaks everywhere.
Fixing a roof (even it is insured) can set you back several hundred dollars. Do you have the cash to pay for repairs – or would you have to use your credit card to go deeper into debt?
Capital Budget Strategies, LLC, Austin’s best financial advisor and money coach, will help you organize your finances and set up an Emergency Fund. For only $149 we’ll sit down with you, all your financial records, a large cup of coffee and a calculator and within a few hours, you’ll have a personal budget, an emergency fund, a Snowball Debt Repayment Plan and peace of mind!
The key is to know what an “emergency” is and what is not:
(1) EMERGENCY: Unexpected car repairs, emergency doctor bills, emergency vet bills, airfare back East to attend family funeral or sudden job loss.
(2) NOT EMERGENCY: Labor Day Sale at Round Rock IKEA, holiday gifts, vacation or new backyard grill.
Your plan should be to save $1,000 as fast as you can and keep it in a savings account for quick access.
Once you work through paying off your credit cards and other financial issues, then save the equivalent of 5 months’ worth of expenses. Five months is a good cushion to get you back on your feet or find a new job.
Hopefully Austin will not be hit by a big storm, but something else can happen – and will. But with an Emergency Fund, you’ll be prepared like a Boy Scout!
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