TawnyaAre you using a credit card as an emergency fund?
Fact: Life happens.
Cars break down, people get sick, we lose jobs.
Are you relying on a credit card to help you in times of crisis or do you have an emergency fund of liquid cash for situations that come up?
I used to always hear “you need a credit card for emergencies” but it was never explained to me that it’s actually a lot better and LESS STRESSFUL to have cash on hand in case of an emergency.
The problem with that mentality is we don’t JUST use credit cards for emergencies do we?
For me anyway, I used my credit cards to cover me for most everything and ended up in a lot of debt because of it.
I didn’t have a budget so anytime money would come in, instead of paying off my card, I would keep the money in my checking account because I was unsure how much I could pay off.
Problem being, when an emergency happened—usually a car situation, I would be so stressed about charging thousands of dollars on my card, and ending up in more debt.
I felt out of control in a lot of ways.
Did you ever hear you need a credit card for emergencies? Did you ever consider keeping a set amount of cash aside instead?
Having a budget is the ONLY way. Being able to pay off debt fast and have at least a mini emergency fund of $1000 for when life happens while doing so, will prevent a ton of anxiety.
The average emergency in the U.S. is $500ish, so even having $1000 will get you ahead of the curve.
Budget Master starts July 20, and if you’re still using credit cards for emergencies, really want to pay off debt, and have a system you can finally make a habit to get on track with your finances, this is it.
Get in the live course now…you will not regret it.
