August gets a lot of us thinking about what we should do to prepare for “back to school.” I work on a university campus, and
If you’re reading this post, you’re likely sitting pretty on some consumer debt. Or maybe you don’t have credit card debt, but you do have a car payment or student loans that are keeping you awake at night. This post will delve into a couple different repayment methods (e.g. the debt snowball vs. the debt avalanche) and discuss the psychology behind both of them so you can pick the method that works for you.
It’s not a matter of if an emergency will happen, but when. Murphy’s law (if something can go wrong, it will) will strike. Instead of taking on additional debt to be able to swing these expected, yet unexpected events, an emergency fund can help see you through these stresses. You can build this “buffer” from your budget by either reducing your discretionary expenses or increasing your income.
An emergency fund is money you have set aside in a savings account to help you cover those emergency situations that happen in life.
The “B” word (we’re talking B for budget) is often this thing we know we should be doing, but many of us may not know where to start…so we don’t. Some months (or even pay periods) we’re just hoping that our spending and expenses don’t go beyond our income. Sometimes we get lucky, and sometimes we use credit. That cycle stops now.