Are you ready for a ‘rainy day’ Print E-mail
Thursday, 16 February 2017
By Robert Johnson
Public Affairs staff

None of us expect to have a flat tire on the way to work, but being prepared for that problem is why most of us carry a spare tire. Now look at your savings account. Is your savings account prepared for common household problems? Could you replace your water heater without financially killing your budget? What happens if you had to pay the deductible on your auto insurance after a collision? Would you be forced to eat Raman noodles for a month or so?
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Johnson

Let’s relook at your savings plan. How much should you have in reserve?

According to the folks at Wells Fargo bank, it really depends on your lifestyle, budget and income, but they say a good rule of thumb is to have three to six months of expenses in reserve.

 In reality, you really have to look at your individual situation. If your world came crashing down tomorrow, what would you really need to get back to your personal mission readiness?

 You have to ask yourself how reliable is your job? Do you have a steady paycheck?

 Most military members know exactly how much will be in the checkbook every two weeks (which leads a lot of folks to living paycheck to paycheck, but that’s another issue.) And for those service members living on post, they know the water heater dying on them isn’t coming out of their pocket.

 Despite these assurances, you still need a small “rainy day” fund. Cars break; unexpected “trips” home occur, and in general, things happen that you don’t expect.  

Let’s rethink that three to six month requirement. It might seem like a lot, but to recall the over-used analogy…“the mighty oak grows from a single acorn.” Your journey to having emergencies covered starts with a single step — get a savings account.

Next, start an allotment to that account. Start small if you need to. A deposit of $25 into your savings from your paycheck can grow into $600 within a year.

Need more help trying to get started? Use the folks at https://militarysaves.org and get all sorts of tips and strategies to create a budget and begin a savings plan.

Starting your savings may seem hard at first, but as you adjust to your new budget, you will find that the money grows in your savings with ease. Your savings will grow, and soon it will be your financial spare tire — ready to assist when disaster strikes.

 Start saving today.
Last Updated ( Wednesday, 01 March 2017 )