Today, we’re talking about how important it is to be proactive (def: acting in advance to deal with an expected or unexpected difficulty) with our money as opposed to reactive (def: making decisions, responding to a situation when it happens). All that really means is that you really should try to plan ahead and put money aside for any unexpected expenses that might come up; things like your car breaking down, your furnace refusing to work or, potentially the most expensive and financially destructive of all unplanned events – a medical emergency. Without a “rainy day fund”, a big, unplanned expense can really knock you down.
Not everyone can put money aside, especially when there’s a lot of debt to pay off, but you should be putting 10% of your take home pay either towards reducing your debt or towards savings. It takes a lot of discipline to do both, but one out of the two is great too!
Anyway, I hope that you have found this little video series helpful and that it’s inspired you to take some small steps in the direction of getting control of your money.
If you’ve got any tips, suggestions or questions, let me know!