02: Save for a Rainy Day
We’ve all heard it:
“Save for a rainy day.”
… Everyone’s Grandmother
According to Bankrate’s latest financial security index survey, 34 percent of American households experienced a major unexpected expense over the past year. However, only 39 percent of survey respondents said they would be able to cover a $1,000 setback using their savings.
When calamity strikes, the average expense is most likely to cost at least $2,500.
“The prudent see danger and take refuge…” … Proverbs 27:12
The first step in your journey to financial freedom and beginning to live the American Dream:
Save $1,000 into a starter emergency fund ($500 if you make less than $20,000/year).
This will anchor your finances in the present and minimize disruption of your plans going forward. In addition, the act of saving will put you in control of your money by intentionally spending less than your income.
