Wednesday, February 06, 2008

31 Days To Fix Your Finances, Day 15

31 Days To Fix Your Finances, Day 15: Coming In Under Budget And An Emergency Fund

Today's discussion was what to do about the money leftover each month. The idea is to put this money in a separate, high interest account until you've built up an emergency fund that contains at least 6 months' salary.

I do agree with this, but think it leaves a little bit out. It forgets that some of our "monthly expenses are actually annual or semi-annual expenses that were prorated to a monthly amount. So when you do this, be prepared to leave those amounts in the bank until the bill comes due. My examples would be home insurance, car insurance, property taxes, and car tag and inspection.

1 comment:

Tanya Brown said...

What? You don't enjoy doing the "how-are-we-going-to-pay-property-tax" polka?