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AN APPLE A DAY KEEPS YOUR FINANCES AT BAY:

FIXING YOUR MONEY WOES

What are your money woes? We all have them. Whether it’s the fact that you were paid on the first but are broke by the second or that that you always have a nervous feeling when you pull up your bank account because you’re never sure if you’ll see a positive number, we all have our struggles with money. While our money problems might be different, their solution has the same starting point: building your savings.

“Ok, I’ve heard that before. Tell me something I don’t know”

We will, but first a quick quiz so you can help us help you. If you’ve already taken it, then keep on reading. If not, no worries we’ll save your place for you.

Where Are You At In Life?

Where you’re at in life is going to determine what your financial goals should be. When it comes to graduating from college, purchasing your first house, having your first kid, or getting married and building your emergency fund you should focus on it when those life changes increase your financial liability.

House

When you purchase a house, particularly your first one, you usually do so with debt (unless your balling which then I don’t know why you are here reading this but that is besides the point). If you put down the usually 20% down payment that means that purchasing a house added a lot of debt to your finances. What’s more is that houses ALWAYS (eventually) will need maintenance. The roof will leak, the furnace will break, or the AC will go and paying for its repair will fall on you and your budget.

Kids

When you have kids its definitely a very joyous time welcoming a new one into the family but it can also add on some additional financial stress. Parents sometimes choose to cut back on the hours they work (and thus their income) so they can be there for their kids while their young. Or sometimes, when cutting back on work just isn’t an option, parents have to pay for day cars, sitters, and nannies to care for their kids while their out. All of which are not cheap. Trust me.

Marriage

Marriage while exciting can have a drag on your finances if your partner has a lot of debt: credit card, student loans, or otherwise. If this happens in your marriage you’re going to want a little extra savings to make sure that that debt doesn’t become a burden if anything financially unexpected pops up.

College

When you graduate from college often time you have no savings and you come out with student debt. To make things worse this is also when your expenses usually go up. You move out from under your parents wing and discover that there’s a thing called bills that come every month and seem to be without limit as to the various types (insurance bill, car bill, light bill, and on and on). Now if something out of the ordinary happens–car accident, hospital trip, getting laid off, #life–you take an already iffy situation and make it that much worse.

Does your health insurance, car insurance, etc. make you pay a lot before it kicks in?

When you have insurance usually there is some upfront cost called a deductible that you will have to pay out of pocket before the insurance company kicks in anything from their coffers. When you have a higher than average deductible that means that you have a higher out of pocket cost you’ll have to pay before the insurance company pay anything. Because of that people with high deductible plans need to make sure that they have extra savings in their emergency funds to make sure that they have enough to cover their full deductible.

How stable is your job?

If your job is not very stable, say you’re a seasonal work that works in the summers but not in the winters, then that means that there are decent stretches of time when you have no income coming in. Because your bill don’t follow such  seasonal pattern (although some of us spend our bonuses like they do) we need to make sure that we have very healthy emergency funds that will be able to hold us over during period when we are in between jobs. Even if your in a more stable position you want to make sure you have some savings set aside because in today’s economy we are all replaceable. To a business we are an expense that can be cut when the economy tanks and the business needs to beef up its margins. Consequently, we need to be ready if that happens and make sure we keep some savings on the side in case we get laid off so we can hold ourselves over till our next job.

Do you have family that can help out financially if something were to happen?

Having family you can depend on can be a huge help financially. When I was born my parents greatly depended on my grandparents to watch me while they were away. However, if this level of family support is not available, that means you’ll usually have to pay for the support you otherwise wouldn’t have to. If my grandparents were available my parents would have had to pay for more sitters and daycare. But let’s expand the idea beyond that. If you lose your job and but have family in the area you can stay with them until you get back on your feet. But if you don’t have any of these familial safety nets it means you have to pay for everything yourself. Consequently, you’re going to want to make sure you have enough savings to support yourself should anything unexpected arise.

How much are you spending?

How much are you saving?

This should be an obvious one but if your spending and lot and not saving much then you’re not going to be in a good spot. However, let’s elaborate on that. If you don’t have much savings but have a large margin between what you take home and your essential expenses (what you need to keep a rood over your head). You might be in an OK spot. For example if you’re bringing in a 100k a year but really only need 40k to live on (but the full amount because you’re indulging yourself) you may still because you’ll have a lot of wiggle room in your budget to cut out all the needless spending and direct those funds to whatever crisis pops up. Of course it would be better to have savings on hand. Now lets take the opposite example. If you’re living paycheck to paycheck and you have no savings and you’re then hit might something unexpected you’re out luck because your budget was already stressed to the maxed. So for you an emergency fund is most critical because you have no excess spending which you can redirect.

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WHATEVER YOUR DREAMS ARE

Don’t Let your finances hold you back. Master  your money and make your dreams real.

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WHATEVER YOUR DREAMS ARE

Don’t Let your finances hold you back. Master  your money and make your dreams real.

#FinanceYourDreams

Join Today

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