Emergency Fund

We hear this over and over "Save your money" or "You have to get a budget".  As redundant as this may sound, there is so much truth in the sentences that sends frustration and sometimes pain up our spines. 

From an early age, most of us have heard that we need to save but how can we save if we don't have the extra cash to put away?  Well consider savings as your spare tire in your car.  If you were to take a road trip from Texas to Colorado, you would plot your coordination into a GPS and enjoy a long road trip.  However, should your tire hit a deep pot hole and cause your car to receive a flat while stranded out in West Texas, you'll be happy to some degree that you can continue on with your road trip after you change the tire.  

Well savings acts in a similar fashion as the spare tire.  When you have  engine failure or mechanical problems with your automobile, the air conditioning unit fails to turn cool on a hot summer day, your child's bike gets stolen, or perhaps your refrigerator fails, most of us have become accustomed to pulling out our credit cards and swiping our plastic credit.  This is what not to do because of something called compound interest. This is your enemy when it comes to credit. 

When you have saved smartly, you can avoid what most Americans do (charge their purchase) and you have the ability to pay cash.  Yes, it stings, but you avoid receiving those pesky bills the following month not to mention the savings in interest and possible late fees.

Saving money can be a difficult task when most Americans are already currently living paycheck-to-paycheck. But while conditioning your mindset to begin saving slowly, whether $20 a week or $40 a week, you are establishing a positive habit that will allow you to quickly reach your goals.  Remember, Rome wasn't built in a day.  The point of this is that like the Great Egyptian Pyramids, you have build it slowly brick by brick.  Once you become accustom to saving, it is very important to recognize that nobody can touch unless it is a TRUE EMERGENCY so when that flat tire does occur or your AC unit gives out, you'll be thrilled you put away some cash for a rainy day.

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