I am a big fan of the financial advice I have heard from both Crown Financial Ministries, and Dave Ramsey. Their methods of getting a grip on our finances are tried and true. I have studied lessons from Crown for years. My husband finally got on board when we listened to one of Dave Ramsey's CDs. Their styles are a bit different. As a friend explained, Crown will hold your hand and encourage you through the journey.....Dave Ramsey will come at you with a brick!
Both resources list their first step to set up $1000 as an emergency fund. This fund will help eliminate the use of credit cards, because when an unexpected expense shows up, there will be cash to cover it. Unexpected expenses will arise. Trust me. It was not long after we set up a savings account funded with that $1000, that the dog became deathly ill and had to be put down. In the past, we would have managed that expense with a credit card. This time, we withdrew the amount from our emergency fund. We now work to put every extra penny we can find back into that emergency fund until it is funded at $1000 again.
A degree of stress is reduced when this emergency fund is in place. It is comforting to learn that emergencies do not have to become a financial crisis.
Both resources list their first step to set up $1000 as an emergency fund. This fund will help eliminate the use of credit cards, because when an unexpected expense shows up, there will be cash to cover it. Unexpected expenses will arise. Trust me. It was not long after we set up a savings account funded with that $1000, that the dog became deathly ill and had to be put down. In the past, we would have managed that expense with a credit card. This time, we withdrew the amount from our emergency fund. We now work to put every extra penny we can find back into that emergency fund until it is funded at $1000 again.
A degree of stress is reduced when this emergency fund is in place. It is comforting to learn that emergencies do not have to become a financial crisis.
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