Fast forward 10 years….and be ready for it.

I read an article from Ramit and it was an interesting article(see link below if you want to read full article). It talks about looking at the big picture of things, great concept, he was focusing on the 20-somethings, I couldn’t relate to some stuff but the idea of talking with people that are 10 years older than you, and find out what they wish they had saved for. This can assist in your mid-term planning stages, farther than the here and now and closer than the retirement stage. He may have gotten a little more complicated by creating buckets for individual things like wedding, wedding ring (remember he is a 20-something). It is a good idea to be prepared for the 10 year window, I believe a committed emergency fund contribution , say 5% if you currently have a 10% savings plan, if no savings, shoot for 10%, and take it out of paycheck so you don’t see it. That would be a more simple strategy with a potential bumps in the road/upcoming things list that the emergency fund would cover, and no that would not include covering bills until next paycheck. If this happens, time to re-evaluate your current spending plan. Anyway, my husband are on this “plan” but instead of having an emergency fund we are paying down our equity line, throwing everything extra at it, so if the “Emergency Items” situation comes up we will be covered. If an equity line has already been cut-off or you don’t have one, commit to that emergency fund contribution, every paycheck, put money in that account until you get that 6-8 months of expenses of cushion under you, it will give you peace of mind and the confidence to move forward with your financial future. That is why it is important to sit down and know your 1-5-10 year goals, write them down, commit to them, look at them, see how you are doing against them, and change them as your situation changes, it is always good to work towards something, if you aren’t moving forward you will falling back. As always, I am here to assist you anyway I can and for $150 for a year’s worth of services, it is the best money you could spend.

http://www.iwillteachyoutoberich.com/blog/already-handled-basics-save-money-get-ahead/

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~ by debt2dreams on July 7, 2009.

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