925 Ideas to Help You Save Money, Get Out of Debt and Retire A Millionaire So You Can Leave Your Mark on the World by Devin D. Thorpe

Author:Devin D. Thorpe
Language: eng
Format: mobi, epub
Published: 2012-11-24T22:00:00+00:00

By eliminating or deferring spending for 30 days, you can give yourself a much needed kick in the savings account. You may be able to cut back $500 or $1000 in a single month, allowing you to make a significant contribution to start your savings account. Harness your new found self-discipline to cut back a bit on future spending so you can contribute $100 or $200 every month to your savings account. You’ll thank yourself!

How Do I Come Up With $25,000 In A Crisis?

Tragically, life will sometimes present you with seemingly insurmountable problems. Sometimes, life’s tragedies come with a price tag. A big price tag.

Imagine your child fighting a battle with cancer that, despite insurance, requires you to pay $25,000 for medical bills. Could you imagine having a son or daughter with a drug problem? Have you ever checked out the cost of rehab? How would you come up with the money? The following ideas may help you to survive the financial side of a personal tragedy.

Plan ahead. The surest way to be ready for this sort of crisis is to have a significant cash reserve. Maintaining a one year cushion should be your goal. That cushion can absorb all sorts of crises, allowing you to focus on the human side of a crisis rather than the financial side.

Insure the risks you can. You can’t insure against every risk, but you can insure many risks. Don’t hang on to risks you can’t afford. Talk to your insurance agent today.

Use your retirement savings. Don’t use your retirement savings to replace your car after an accident—that isn’t a real crisis. Don’t use your retirement savings to fund elective surgery—it’s not a crisis. In a real emergency, however, you may be able to borrow from your 401k without penalty. You can always withdraw money from an IRA, but be prepared to pay the 10% penalty plus tax.

Borrow against your home equity. Home equity is fleeting. Borrowing against it is risky and unwise in all but the direst circumstances. Don’t borrow against your home to buy a new car or pay for a vacation. Be cautious about borrowing for home improvements—improvement is in the eye of the beholder. If you don’t have the ability to borrow from your 401k in a crisis, your home equity may be a refuge.

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