Reducing Financial Stress In Times Of An Emergency

Reducing Financial Stress In Times Of An Emergency

NOTE: This is a proactive, not reactive viewpoint.

There are some things you simply cannot plan for, but we can all acknowledge that things aren’t designed to last forever.  I know it can be a scary thought but it doesn’t have to be.  Instead, see it as a key piece of information that can serve you in life, it has served me well.

flickrCashLifeSaverEvery payday I deposit $50 into a separate savings account just for emergencies.  It’s not a lot of money, but emergencies don’t happen every day, or even every month, so the money has time to accumulate.  I can’t tell you how happy I was that I had this account when my car broke down a week before my vacation and the repair was going to cost almost $600 (and I needed my car to get to the airport).  Or when a bird decided my exhaust duct would make the perfect home for her family and I had to call someone to remove the birds, the nest and clean the duct ($300).

Don’t misunderstand me, I didn’t enjoy paying for any of these things; however, having a little stash sure did soften the blow and ease the stress.

For me, a big factor is to forget (as best as I can) the emergency account exist.  I “forget” this account by setting up automatic deposits or transfers.  This means I don’t have to deal with the account until an emergency actually happens.  This is the best practice for me.  From experience, I know when I try to deposit or transfer money into my emergency account on my own it doesn’t always make it.

Life happens to all of us. It’s not a matter of IF, but WHEN. Acknowledging this allows us to put precautionary measures in place to limit the disruption of our lives.  Remember that vacation I mentioned, that $600 car repair would’ve really put a dent in my plans, but instead I was able to move on as if nothing happened.

Photos by and via Flickr under Creative Commons.

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