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9 • A Good Money Manager
Prepares for Future Emergencies

Everyone should have an Emergency Fund. This is the single most powerful part of your money management because having this in place means you are a successful manager who not only has savings to provide a future of wonderful lifestyle but has also made themselves safe from losing control.

  • Saving is all about not wasting away expendable income.
  • Having expendable income means not having debt.
  • Not having debt means being prepared for emergencies.

Therefore, a rainy-day fund really helps you when it comes to protecting finances.

emergency fund

Think about it like this: your car breaks down and you suddenly have $2,000 in extra payments. You didn't plan on this happening, so you have to take out a loan. Credit is tightening up, so your interest rates would be pretty high. Pretty soon, you're paying 6 or 7 percent interest on a loan, which cuts into your ability to save for the next year. If you had an emergency fund, you could have avoided digging into debt, and the associated interest rates, in the first place. Being prepared really pays.

Golden Rule: Working to a Spending Plan means that you choose to hold back on spending to be able to put some money aside; it doesn't mean that you can't get something unexpected when you need it. If you are putting savings aside it means you are in control of spending, and you are enabled when something comes up, to make the choice to purchase CONSCIOUSLY! You are simply making a decision on value, choosing this as a worthy priority over future financial freedom.

Another powerful emergency option is to keep a rounded up monthly amount in your utilities account so that you are always prepared to pay at least one 'bill' ahead of your expected payments. It may be a while before you are ready to implement some money management tactics like this one but these are worthy things to do to protect your financial freedom.

When you can manage your money, You will have Great Credit!