As the year rolls on, many people have lost their excitement in achieving their financial goals. Everything from a broken appliance, car repair, or an unexpected expense can dampen the spirit of even the most dedicated people.
But why should “unexpected events” like that slow you down? Guess what, they can’t if you are prepared and have a plan.
But how is it possible to plan for expenses like those? Easy, have a sinking fund.
Car expenses are inevitable, hence they really aren’t “unexpected.” If you own a home, something will always go awry, so those tabs aren’t unexpected expenses either. The point is, there really is no excuse to be unprepared in the event of an “emergency.” Follow these ten tips to stay focused on your financial goals and to be prepared for the “unexpected.” Just click on each hyperlink to be sent to an article to help get you started (or keep you rolling) in the right direction.
- Have a plan, set SMART financial goals. The saying goes, “If you fail to plan, then you plan to fail.” Don’t start out on the wrong foot, set smart savings goals if you want to achieve them.
- Start saving today. In order to get the full benefits of compound interest, the sooner you start, the more you’ll save.
- Find ways to cut costs. As single parents, choosing the right daycare, cutting your cable bill, and saving on groceries can be like getting a second job! This is one of the easiest ways to keep money in your pocket. What cost can you slash?
- Decide to be debt free. Rid yourself of the burden of credit card debt and find a plan to help chart the course. Click here for one that worked for me.
- Use sinking funds to be ready for those “unexpected expenses.” This article talks about vacations and car insurance, but you can create accounts for anything you need to save up for.
- Be nice to yourself and allocate money for self-care. While it is important to save with intensity, you must enjoy life now. That’s why its important to maintain the right balance with your money.
- Stay encouraged by reading about personal finance and saving. These 5 books will change your life.
- Have a plan for the unthinkable. Two emergency funds may be best if you want the security of a six month emergency fund for job loss, plus money set aside for those pesky “unexpected emergencies.” I feel better with two in place, although one is a start.
- Avoid making money mistakes. Choose a home you can afford and consider purchasing a mature home. Also, don’t try to keep up with the Joneses. Stay focused on your money goals. Avoid these other traps.
- Just have fun. We only have one chance to live life. Try not to stress over things and enjoy the life you’ve been given. Hindsight is 20/20. Instead of dwelling on what you didn’t do or what has happened in the past, get excited about the wonderful opportunities that are sure to come – especially when you’re financially free and building wealth.
What tips will you try first? Pick two or three then share in the comments. Also, join our Facebook group to be linked to a community of single parent savers like yourself.
Happy saving, live well!