Wednesday, August 01, 2007

When a rainy day happens

Dave Ramsey calls it Murphy, others financial guru call it curveball and lots of us just call it LIFE!

Whatever happens and you need to dip into your rainy day errr Monsoon fund here are some tips shared by Today show money expert on how to plan and save.

Call your creditorsCall your mortgage company, credit card company etc. The sooner the better, let them know that you got laid off, someone is sick etc.
Explain that you're taking full responsibility for putting a plan in place to get them their money, and then get back to them quickly. “They'll respect you for doing that, because you've made their job so much easier,”

This is not the time to get gazelle about paying off your debt. Only pay the minimums. 

Make more moneyGet a second job if you need to build an emergency fund. If you lost your job, check out craigslist for some freelance work and sell stuff on ebay, craiglist or have a yard sale. If you are still working, go to your boss and ask for a raise. 

If you still have your job, see if you can get overtime.  Some freelance sites include  odesk, fivrr work at home job

Cut your spendingTake a look at your budget and what you are spending day in day out! Save that $3.00 on your Starbucks latte or that Outback dinner and put that money aside to help pay the bills. Bare bones until you get your head from underwater.

No eating out-focus on the basics check out these  easy recipes

You don't need any toys. In fact this may be the time to sell some of your toys on craigslist 

Ask for help
I am not one to ask for help so this one is hard for me to suggestion. However if you need assistance, you church, your local community would be places to go. I think friends and family would be the last ones to go ask for financial help. Of course, an hour or two of free babysitting could help a job search go easier.

Once you're back on your feet, plan for next timePeople who have emergency funds are far less likely to take a dive every time an extra bill comes their way. When the unexpected pops up, you can dig into your emergency savings for living expenses instead of whipping out the plastic. Think of it as borrowing from yourself instead of the bank. Aim to have three to six months' worth of expenses stashed in a savings account that's easily accessible but will still bear you some interest.


The Orange Savings Account. Great rates, no fees, no minimums.

The Total Money Makeover: A Proven Plan for Financial Fitness

Money Rules: The Simple Path to Lifelong Security

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