Debt Wave 1

£1,000 Emergency Fund

The first step is to save some money straight away – however you do it is not important – whether you sell some unwanted stuff on eBay or work some overtime – it is important for you to save around £1000 and put it somewhere safe that you can get to it when you need to – not if you just want to buy something – break this mould & STOP spending. You might ask me – Why are we doing this and not paying it off our debts? An emergency fund is for those unexpected events in life that you can’t plan for: the loss of a job, an unexpected pregnancy, a faulty car gearbox, and the list goes on and on.

It’s not a matter of if these events will happen; it’s simply a matter of when they will happen.

This beginning emergency fund will keep life’s little Murphies from turning into new debt while you work off the old debt. If a real emergency happens, you can handle it with your emergency fund. No more borrowing. It’s time to break the cycle of debt!

Stick with this with focused intensity and put this money away as soon as you can, oh and by the way these are not emergencies :

Christmas – it happens every year without fail – its not a surprise so plan for it – be wise on your spending & don’t borrow to pay for it – you’ve got a whole year to save for it !

Birthdays – again these happen every year on the same date so it’s not a surprise and it not an emergency you have a whole year between these – so again plan for them !

A meal out – do not be tempted to  borrow some of the emergency fund to apy for a meal out – I know you’ve been struggling with debt & not buying things properly, but you’ll come to that soon – for now we need you to save that £1000 for a REAL emergency.

Yes I’m gonna be tough with you -WHY you ask – because someone has to be tough with you to stop this downward spiral in spending deeper & deeper into debt. I care about you enough to be tough & say NO – you don’t need it.

Saving must become a Priority

This is the new order that I want you to do from now on.

When you get paid whether from your employer or your own business:

1. Pay yourself first, whatever you’ve worked out you need, pay yourself – you deserve it.

2. Give your donation away to your favourite charity, pay your tithe.

3. Save, put a little say 15% away for that special treat or for something you are saving for (remember there’s no more credit cards or loans it all saving now)

4. Now pay the bills.

You should save money for three simple reasons:

1. To start your emergency fund

2. For purchases (essential)

3. Wealth building

Call us now on 07930 464461 or email: FinancialPeaceUK@gmail.com to arrange our visit.

  1. #1 by Julienne on February 24, 2014 - 8:04 am

    It’s perfect time to make some plans for the future and it is time to be happy.

    I’ve read this post and if I could I wish to suggest you some interesting things or
    tips. Perhaps you could write next articles referring to this article.
    I want to read more things about it!

  2. #2 by Trudy on April 15, 2014 - 4:03 pm

    It’s hard to find educated people in this particular subject, but you seem like you know what you’re talking about!
    Thanks

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