As you may know there are lots of things you can do to get your financial health back in shape. It can be very overwhelming. I'm going to make things easy for you, one step at a time.
First step, start an emergency fund. An emergency fund is easy accessible money for you to use only for an emergency. An emergency is not an XBOX 360, a new outfit or a down payment for a car. An emergency is new tires for your car because your vehicle won't pass inspection with out them. Job layoff is another good example for why you would use your emergency fund. Life throws you curve balls. It's your priority to be ready for them. An emergency fund will help relieve you from the day to day stress of life's little hiccups. It's like having an insurance plan to protect you from many of life's emergencies.
How much do I put in an emergency fund? Start with $1000 in a savings account. It's not going to get you by for two or three months if you lose your job, but it will make sure you have food on the table to feed your family while you look for another job. Once you're able to get financially fit, a larger emergency fund will be more important. Three to six months of your monthly income will be a future goal.
I know how important setting aside an emergency fund is because I have taken Dave Ramsey's course on Financial Peace. And I feel more confident when life does throw it's curve balls at me. I highly recommend you take his Financial Peace University course or read the book Total Money Makeover. Please feel free to call me or email me anytime to discuss your financial struggle or get a few more tips on how to get financially fit.
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