One of the most important things that Jenn and I did to gain financial freedom was to begin thinking about and planning for the future.
It was a recognition of these basic FACTS:
- The future is coming.
- Life will happen.
- It will cost money
Based on these facts, we could choose 1 of 2 responses:
- Have zero money saved and use debt to pay for those life events OR
- Save money in advance and use that money to pay for the life events
Prior to December 2, 2002, we chose Option #1. Every single time the car broke down or needed tires, we used debt to pay for it. When we had to go to the doctor, we financed it. Vacations? All of them went on the credit card. Christmas – all of that went on the credit card – with the excuse that we would use our tax refund to pay it off. Never happened.
Option #1 is rife with stress, frustration, and anxiety. Always fearing the next big calamity. I am so glad that we have chosen Option #2 for the past 8+ years.
GOAL: Save at least $2,500 in a basic emergency fund.
EXTENDED GOAL: Save at least $10,000 in a fully-funded emergency fund.
Have YOU protected your financial future? Are you preparing for it by saving? Share your story in the commments!