How to Create Your Own Emergency Financial Assistance

Despite what the television and the media are saying, not everyone is broke. There are those around you that always seem to have enough. These individuals are not flashy, or living in mansions. What is their secret?

There are many financial secrets that the school systems in America does not teach its students. You may have been told to go to school, work hard, and get a job. Once you had your job, you were to keep up appearances. Maybe kids and marriage came into your life. Yet, you see a fellow co-worker, whose spouse does not work, and they seem to be doing better than you. Perhaps he has learned the secret of living within his means. He drives a used paid off car, drives an extra fifteen minutes to work due to the home prices being cheaper in his neighborhood. He brings his lunch to work everyday, has no credit card balances, sticks with his budget, and pays cash for purchases.

Do you feel pressure to buy or lease a new car every three years ? You may have purchase a home that has you deep in debt. The bank qualified you for the loan, event though the mortgage is more than thirty percent of your take home pay. Your banker may have suggested that you borrow against your 401K for the down payment. After unexpected expenses at closing the reality and pressure of home ownership has set in. Your credit card minimums are eating away at your bank account. Suddenly you have become painfully aware of your financial decisions.

How many months could your family survive if your paycheck stopped? How would you eat and meet your basic needs while you searched for a new job? What would happen if you were unable to repay back all of down payment loan you pulled from your 401K ? What if the lender was unreasonable and reported your loan as income, that had IRS penalties?

Start today with a plan to change your finances. Create a budget that will pin point where you are overspending. Sell things that you do not need, for immediate cash. Make a choice to spend less money on things that are negotiable. These things are food, transportation, clothes, frivolous purchases and housing. Cut out everything that is optional, such as cable, weekly manicures, and having your car detailed.

Buying a home is only good, when you can comfortably afford the mortgage, taxes, insurance, and homeowners association fees. Think about how you would feel if your paycheck stopped tomorrow. Use that feeling as motivation to start saving. Make it your goal to have at least one thousand dollars to six months of living expenses in an interest bearing money market account. If this goal feels impossible again remember the feeling of being totally defenseless against loosing your employment.