How to Build your Emergency Fund

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You see, we learned a valuable lesson many years prior about the importance of an emergency fund. Our saving grace was the money we had saved in our emergency account. If not for that fund, we would most likely have used credit cards to survive. We reduced our spending where we could that year, but the money to pay any shortfall each month came from our emergency fund. That emergency fund saved our business, our sanity, and our marriage.

25 Ways to Find Money for Your Emergency Fund

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Emergencies happen when you least expect it. Our emergency fund has saved us countless times and it will save us once again with the truck. If you can’t answer with the word, CASH , then please, set yourself up for success and build your emergency fund. Follow these three action steps and the list of ideas below to find the cash for your fund. 3 Action Steps to Set Up your Emergency Fund. 3 – Commit to funding the account.

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So You’ve Maxed Out Your Emergency Fund – Now What?

Prairie Eco-Thrifter

Personal financiers will frequently advise that you have an emergency fund of 3-6 months of expenses in your bank account at all times. Saving up this chunk of change can take a long period of time, especially if you have a high expense to income ratio, which many people do (especially if you’re paying down debt). . I remember a few months ago when I hit my $10,000 emergency fund target. You’ve spent the last several months saving for an emergency fund.

Create an Emergency Fund | 31 Days to Organize Your Finances

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We’ll talk about cash flow, budgets, debts, and all of the nitty gritty of our finances that might not be fun to talk about, but are so important to discuss. Both instances could have brought us down and we could have reached for a credit card, but thankfully, my husband and I are pretty adamant about having an emergency fund and I want you to become adamant about having one too. That fund was a life saver, a sanity saver and a marriage saver.

Emergency Funds: Emergencies Happen When You Least Expect It

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What got us through.our emergency fund. Had it not been for the money in our emergency savings, we would most likely have used credit cards to survive. We reduced our spending where we could, but the money to pay any shortfall each month came from our emergency fund. How Much Do You Need in an Emergency Fund? What is considered an emergency? An emergency fund is really a necessity account. It is for emergencies.

2019 Debt Freedom Plan Update

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Our Debt Freedom Plan has been a long winding road. The journey started in 2012 when we bought an office building for our business and then found ourselves with a lot of debt and not enough cash flow. To ease my anxiety about our new loans, we took the Financial Peace University home course and it changed how we thought about debt. From what we learned in the course, we wrote our Debt Freedom Plan. 1 – Save a starter Home Emergency Fund.

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How our Debt Freedom Plan Prepared Us for the Pandemic

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How Our Debt Freedom Plan Prepared Us for the Pandemic. Our emergency fund. I am totally paraphrasing the year, but had it not been for the money in our emergency savings, we would most likely have used credit cards to survive. We reduced our spending where we could, but the money to pay any shortfall each month came from our emergency fund. We’d survived the dip in 2007, carried no credit card debt, and we were contributing to our retirement.

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Meet Aja. She & her husband Paid Off $110,000 in Debt

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Today’s debt free story is from Aja. How much debt did you pay off? What kind of debt was it? We paid off about $110K worth of debt. We were not as “gazelle intense” as we should have been so we often went back and forth adding new debt, paying off other debt, and cash flowed about 30K of private school tuition, so the numbers can get wobbly at times. What inspired you to get debt free? We had one income and lots of debt.

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Meet Jackie. She and Her Husband Paid off $147,000 in Debt | Debt Free Stories

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Welcome to Debt Free Stories. She and her husband paid off $147,000 in debt–including their home. After paying off the debt, she was able to quit her job to pursue her passion. She blogs at The Debt Myth. Quitting my job is one of the things being debt free has enabled us to do. If you want to become debt free, I’m here to tell you it is TOTALLY worth all the time, effort, and frustration. How much debt did you pay off?

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Meet Doug & Laura. They Paid off $23,000 in 16 Months. | Debt Free Stories

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Welcome to Debt Free Stories. How much debt did you pay off? What kind of debt was it? The debt consisted of my student loans and a car loan. What inspired you to get debt free? When my wife and I got married, we both made the decision that our first financial priority would be becoming debt free. Did you follow a particular debt freedom plan or book, such as Dave Ramsey or Debt-Proof Living? Make paying off debt a priority.

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How Angela & Jeff paid off $58,000 of Debt in 2 Years

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I watched her and her husband’s debt free scream on The Dave Ramsey Show. You can find Angela at her You Tube channel, Our Life…on a Budget , where she vlogs about getting out of debt and staying there! Angela & Jeff’s Debt Free Story. How much debt did you pay off? What kind of debt was it? worth of debt. What inspired you to become debt free? What are the top 3 – 5 ways you found money to put towards debt.

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Our 2017 Debt Freedom Plan Update

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As I reflect back to January 2016, I started that year pretty determined to pay off the balance of our non-mortgage debts. Unfortunately, we did not hit that goal and in part, have made some major changes to our Debt Freedom Plan. Our Debt Freedom Plan Started in 2013: The year 2012 was quite exciting for me and my husband. Our extra funds went towards our cash flow. On one hand, we’ve paid off $75k in business debt in 3 years, on top of cash flowing life.

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Meet Tracy, a Single Mom Who Paid Off $41,587 | Debt Free Stories

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Welcome to Debt Free Stories. She paid off $41,587 in debt in 14 months! How much debt did you pay off? What kind of debt was it? The debt included overdraft protection, mattress, car, and a credit card (post divorce stress spending, clothes to accommodate the yo yo diets and weight for 2 years, a trip to Disney World & I’m sure several things that I don’t remember because I was spending without a plan). What inspired you to get debt free?

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Find out how Charissa and Her Husband Paid Off $7665 of Debt and Cash Flowed College

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Today’s Debt Free Story is from Charissa. How much debt did you pay off? What kind of debt was it? We started paying it off when we got married and became debt free just shy of our second anniversary. What inspired you to become debt free? I had watched my parents pay off their debt, including their house, when I was a pre-teen, which really influenced me. They didn’t like debt, and as I grew up, neither did I. Debt Free Stories

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Our Debt Freedom Plan | Marriage & Money

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Prior to FPU, we thought we were doing well financially and never considered that we had too much debt. We didn’t have credit card debt, we paid off our car notes early, and the interest rate on the student loan was at a low 2.75%, so we thought we were doing okay. But Dave Ramsey’s view of debt is very different. “Debt is Dumb and Cash is King.” We never considered all debt to be dumb. Our Debt Freedom Plan.

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Update #1: Our Debt Freedom Plan

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Back in March I wrote about my family’s Debt Freedom Plan. Today I am proud to say that we have completed our second step : Increase business emergency savings to a specific number. Our current savings is not at a true emergency fund level of 3-6 months, but further down our plan, we will save up to that level. But reaching #2 has given us new motivation to keep plowing away at our business and our Debt Freedom Plan.

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How to Live your Dream Life Debt Free

Prairie Eco-Thrifter

Living your dream life debt free requires a simply task of going back to Grade 1 math lessons and applying the concepts. Likewise, in your adult life, you can think of the first number representing the source of your monthly income and the second depicting debt or expenses – you need to borrow from another in order to complete the operation. Now hold that thought and think about this: living your dream life debt free. . Basically, living your dream life debt free is simple.

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Shannon & Her Husband Paid off $22,000 in 9 Months

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Today’s Debt Free Story is from Shannon. How much debt did you pay off? What kind of debt was it? As many students do these days, we had tens of thousands of dollars of debt by the time we graduated with our Masters degrees. Living on two-incomes, we could have easily paid off our debt quickly, but we had no idea at the time that “debt free” was even a thing. Read more about Shannon’s debt free journey.

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My Life Plan

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At the time, I wasn’t sure how we were going to pay our monthly bills, so future plans like funding our retirement , our daughters’ college education, or a lavish vacation were not on my mind. But once I created our debt freedom plan and outlined the steps we would take to wade through the hardships, I was overcome with relief. Our Financial Goals: Pay off our non-mortgage debt. Increase our emergency fund to 6 months of expenses.

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Our 2018 Financial Goals

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We blew through our health savings account, and now need to save another $10k so we’re not caught off guard if another emergency were to happen. This is our very last non-mortgage loan and we send an extra payment every month as part of our Debt Freedom Plan. However, we could use a year of extra thriftiness to find any extra funds to accelerate the $10k. I’ll apply that money to the debt. You can read my original post: Our Debt Freedom Plan Begins.

How I’m Managing our Family Budget during the Pandemic

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I have written often about the importance of an emergency fund. Who would have concocted a story like this when planning for an emergency? We paid off our last non-mortgage debt in September and have since sent that loan’s monthly payment to our mortgage principal. This is not an elective, fun, no-spend month like what we did in January to find funds for our summer vacation. Emergency Savings = Last Resort. Our Debt Freedom Plan

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Find Out How Olivia & Her Husband Paid off Their Mortgage in 33 Months

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Today’s Debt Free Story is from Olivia. We are both planners and despise wasting money on debt/interest, which is what led us to pay off our mortgage as soon as we could! How much debt did you pay off? What kind of debt was it? We paid off a total of $118,000 debt. The first week after our Honeymoon, Ryan paid off the remaining debt on my car. What inspired you to get debt free? There were two things that inspired us to pay off debt.

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Over 40 and Worried about Money? Start here!

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We charted out our course of action to pay off debts and start saving for retirement. It’s taking forever for us to accomplish the step we’re on (paying off our non-mortgage debt), but we keep plugging away. Start Saving for your Emergency Fund TODAY! Our saving grace was the money we had saved in our emergency account. If not for that fund, we would most likely have used credit cards to survive.

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How Krystal and Josh paid off $80k in 4 years!

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I love her passion for helping others along their debt free journey. Krystal & Josh’s Debt Free Story. How much debt did you pay off? What kind of debt was it? It took us four years, but we paid off over $80,000 of debt! We are debt. debts one by one. What inspired you to become debt free? When we added my grad school loans to our other debts and our regular. towards our debt. Ramsey or Debt-Proof Living?

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Our Big Financial Goal for 2016

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As God is my witness, it WILL be the year that we pay off the last of our non-mortgage debt. That was the month I didn’t know if we had enough funds to cover our expenses. At the time, we had 4 business loans and 1 student loan that were weighing on us, so we created our Debt Freedom Plan. Apply any Found Money to Debt. I’ll apply that money to the debt. While this is the year of dumping debt, we still want to enjoy our life.

Friday Links – Too Swamped Edition

Prairie Eco-Thrifter

Working to build your emergency fund? Read up on emergency fund basics at Money Smart Guides. If you’re currently balancing your debt payoff and savings efforts, Canadian Budget Binder highlights the reason why it’s important to get out of debt first before saving. Are you a current student or someone who’s currently paying off student loan debt? Hi everyone. This week has been crazy for me. I literally feel spun.

How to Prevent Three Common Disastrous Personal Financial Mistakes

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Lack of An Emergency Fund . One of the most common disastrous finance mistakes is not having any sort of financial back-up for emergencies. Experts recommend an emergency fund of at least six month’s salary as essential, especially if you are struggling to make ends meet. Remember, this account is for emergencies , not to make up the shortfall at the end of the month. Make an allowance for a small amount of savings, in addition to your emergency fund.

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Short on Cash? | 31 Days to Organize Your Finances

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We’ll talk about cash flow, budgets, debts, and all of the nitty gritty of our finances that might not be fun to talk about, but are so important to discuss. So if you could use some extra cash for your emergency fund , or save for Christmas presents or any other activity or need, then you must read 31 Days to Find $1000. Welcome to 31 Days to Organize Your Finances. By the end of the month, my goal is to help you have a detailed financial plan for your family.

Update #2 | 31 Days to Organize Your Finances

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We’ll talk about cash flow, budgets, debts, and all of the nitty gritty of our finances that might not be fun to talk about, but are so important to discuss. Day 3: I took 4 days off due to an unexpected family emergency. Day 10: Create a Personal Escrow Fund. Day 13: Create an Emergency Fund. Day 14: Create a Gift Giving Fund. Day 17: Create a Plan to Eliminate Your Debt. Welcome to 31 Days to Organize Your Finances.

How to Achieve Your Financial Goals (tips from the achievers)

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They pay off mountains of debt and scream about debt freedom, or maybe they save gobs of money in a record amount of time, or they have considerable success with their new small business. Meet The Achievers: Deacon and his wife paid off $52,000 in debt in 18 months. Maureen eliminated $79,000 of credit card and student loan debt less than 3 years. Their 2017 goal is to pay off the remaining balance on their mortgage ($27,900) and be DEBT FREE!

Small Money Mistakes That Have Big Consequences

Prairie Eco-Thrifter

Increasing your credit card limit is really increasing your debt, or at least your exposure to debt, so say ’No!’ Not Having an Emergency Fund It is dangerous to spend every cent you earn and not to have buffer against illness, injury, job loss or hard economic times. Make establishing an emergency fund a priority. Ignoring Your Debt Debt is not just going to go away, you must handle it and work to whittle it away.

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How to Avoid Financial Disaster

Prairie Eco-Thrifter

Start an Emergency Fund One of the biggest things you can do to help avoid disasters is to create an emergency fund. This is a reserve of money for emergencies; leave it alone and don’t go dipping into it for general spending. It’s not for paying bills, going on holidays or paying college fees; no matter how urgent these might be, they are not emergencies. Manage Your Debts Managing your debts is a biggy when it comes to avoiding financial disaster.

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Easy Ways to Build Up Your Savings

Prairie Eco-Thrifter

Many families are toeing the line of slipping into debt, if they aren’t already over their heads. With just one emergency such as a car breaking down or, in the US, a medical bill, many could be in a very precarious position. Combined with my extra income, this $600/year (give or take $25) really helped boost my savings and therefor my emergency fund. A surprising amount of North Americans are not putting money away consistently for retirement.

How to Get into the Stock Market

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Those of us who had stocks , bonds, and mutual funds saw our net worth rise, but many (perhaps as many as 50% of us, according to CNN Money article M illions see no benefit from soaring stock prices ) missed out. Traditional investment advice says that you shouldn’t invest in the market until you are financially stable, have an emergency fund and have taken care of other basics, such as insurance of all kinds, debt removal and etc.

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The Deadly Sins of Personal Finance

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This can breed short sightedness as you struggle to deal with your debt. We all know how powerful debt snowballing can be, with small amounts adding up over time to pay off a big portion of debt, and the reverse is true with small portions of spending adding up overtime to wreak havoc on your finances. Short sighted people are the type that don’t save emergency funds, because they’re too busy putting out the fires of the moment.

The Final Day of 31 Days to Organize Your Finances

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During the series, we talked about cash flow, budgets, debts, and all of the nitty gritty of our finances that might not be fun to talk about, but are so important to discuss. Day 3: I took 4 days off due to an unexpected family emergency. Day 10: Create a Personal Escrow Fund. Day 13: Create an Emergency Fund. Day 14: Create a Gift Giving Fund. Day 17: Create a Plan to Eliminate Your Debt.

Best Way to Spend Tax Refund

For the Mommas

Get Rid of Debt. If you are one of the many people who have a little or a lot of debt accumulated through credit cards or other ways, use this opportunity to pay some of it back. Paying off your debt now will lighten your load in the future and reduce money paid by you in the long term due to reduced interest on your loans. Add to Your Emergency Fund. An emergency fund can never have too much money in it. Best Way to Spend Tax Refund.

Take a Household Inventory and Plan for Replacements | 31 Days to Organize Your Finances

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We’ll talk about cash flow, budgets, debts, and all of the nitty gritty of our finances that might not be fun to talk about, but are so important to discuss. If something substantial suddenly happens, we do have an emergency fund to cover it, but now I’ve been given a warning that our van will need some major service in about a year. The goal is to identify the need before something breaks down, so you are not caught off guard without the funds.

Take Control of Your Money in 2015

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Most of them are related to our small business, my husband’s chiropractic office, but last January I got a bee in my bonnet about debt…thank you, Dave Ramsey. I tricked …nudged my husband into following along and together we wrote out our Debt Freedom Plan. When I run the numbers, I realize it’s going to take years before we can scream, ”WE’RE DEBT FREE”, our ultimate goal. Debt Free Stories. New year. Fresh start.

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Are You Heading for Financial Disaster?

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Like I state on my About page , I was in debt and living a life that didn’t satisfy me. Statistics show that nearly one in two Americans are in serious financial problems due to their debt levels. Also include an emergency fund and contributions to a retirement account, even if just small amounts at first. Stop making excuses, don’t justify your situation and avoid adding more debt into the mix. Don’t forget to enter to win an iPad 3 here at PET.

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Should You Buy a House Now?

Prairie Eco-Thrifter

It makes sense to wait to buy until your consumer debt is mostly handled. Adding another debt obligation while you are already struggling with high-interest consumer debt, can burden your finances. An emergency fund? Right now, many people wonder if now is the right time to buy a house. In the United States, where I live, there is interest in buying now, before prices completely recover and while interest rates are near record lows.

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Reader Question: How Much Money Do I Need To Buy My First Home?

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Working out how much the down payment would be is only half the answer – you’ll also need to work out what is affordable on your budget once you’ve factored outgoings and debts into the bargain. How much of your income would be used to pay down your house-related debts? Total Debt Service (TDS) ratio – This approach looks at your debt levels, including housing debts, loans, car payments and credit card repayments.

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How to Make Your Budget Work for You

Prairie Eco-Thrifter

Would you feel a weight lifted if you could pay off your high-rate consumer debt? Money is automatically deposited into the retirement and emergency fund accounts, as well as to my son’s 529. The reality is that it doesn’t really matter what I spend the rest of my money on, as long as I don’t go into debt and as long as I feel good about the spending because it is in line with my personal core values. One of the hardest things to stick to is a budget.