#40BEFORE40 : SAVE AN EMERGENCY FUND
I remember when I first began reading blogs back in 2007 I followed a financial blogger, Chicky Finance, who had a personal challenge similar. Her personal challenge was to save a particular amount of money and when she reached her goal she would stop blogging and disappear. She shared her journey almost daily, giving us a documented experience of reaching milestones. Well, she is no longer searchable on any search engines. She reached her goal. And, I'd like to do the same---document my journey and share it with you.
This series will be pinned to the sidebar for the duration of my journey--3 years and I will update as items are started, the process and the completion. I’ll probably also write an update post about them each one as I go along--the good and the bad. I hope you join me, encourage me and are inspired to make a list of your own.
So, here's the thing-- I wanted to start with number 2 which is Save An Emergency Fund because I saw a recurring theme years after years of why I wasn't reaping benefits of many of my desired experiences. Honey you gotta have money.
I will admit right now--- I AM NOT A FINANCE GURU AT ALL! Therefore, I have searched the web for finance bloggers I like, bought a few new books and spoke with some of my friends who have great money habits to help a girl out. I do plan to get very educated and confront some of the financial fears I have head on though. It is not cute to be broke. You can't have these amazing experiences without money. Money is a tool to allow you to live the best life full of experiences. I realized everything on my last primarily requires money. So I had to put on my big girl skirt and devise a solid blueprint to financial freedom.
SKETCH THE DESIRED OUTCOME
The first thing I did was ask myself how many months of savings would allow you to feel comfortable. The way I think is like this, okay, I want to take an entire summer break off from work. How much money do I need? I need a solid 3 months of my expenses plus a little cushion to say adios to the office during the best time of the year. If I wasn't going to bask in the sun for the months but just wanted to feel secure in my finances, get sick God forbid and can't work, three months would be sufficient to carry me.
DRAW THE FOUNDATION OR THE BUDGET
I'll have to be very transparent with many of these experiences. I don't really mind because well sometimes it's quite refreshing to see that people have real life issues or real life journeys, right?! I'm pretty frugal and live below my means already. Years of entrepreneurship and sacrifices have caused me to not really master my finances. I made money sometimes not enough, sometimes a lot but the income wasn't steady so now. I am playing catch up with savings now that I have a steady and solid stream of income with a full-time job. I actually have income to save now, tootsie rolling. Ok, here's my plan.
EMERGENCY FUND BALANCE AS OF JANUARY 2018= $220
SAVINGS GOAL = $500 PER MONTH
TENTATIVE GOAL DATE = JANUARY 2018
DECLARE THE INTENTION
"BEFORE I TURN 40, I WILL SAVE AT LEAST $5,970 PER YEAR"
I plan to save 10-40% of my income from work and additional streams of income to contribute as much as possible to my emergency fund goal.
I have so much to share and I'm kinda of excited to update you with my progress hopefully no shortcomings. However, if I have some I'll promise not to keep it a secret.Like I said, I will pin the series on the sidebar and try to update weekly or at least biweekly. That's kinda being fake. If you'd like to join me just comment below and I'll be sure to share resources, hold us accountable and upload some challenge worksheets to the blog to help keep us on track.