Recession Planning

I was talking to a friend this week who is very worried about the economy. She is a stay-at-home mom and they rely entirely on her husband’s income. Recently there have been lay-offs at his workplace, so they are incredibly worried about their financial stability. She told me she was going to start stocking cans of food, “just in case.” That totally took me back… stocking cans of food?? This family has tons of money in investments, so even if her husband lost his job… they would have a large savings, plus unemployment income to live off. Still, she was … Continue reading

Emergency Funds

An emergency fund is not a true savings or investment. It is money that is set aside for the unexpected. It is there just in case something goes wrong. If you lose your job, unemployment pay only covers a portion of your paycheck and does not cover other benefits like health insurance. If you need your car to drive to work, what would happen if the engine blew up? Would you have enough to cover the cost? These are some common scenarios where an emergency fund can be a lifesaver. It will only work if it is easy to access … Continue reading