Hi All,

Let's talk about the first step on your path to financial freedom. 

Financially Healthy.

What do we mean by financially healthy? It means we can handle expected and unexpected expenses when they arise. Sadly, most people in the US can't do it. They couldn't handle anything more than $400 if it came up. I don't know about you but I can't remember the last time I had an unexpected expense less than $400!

So, how do we become financially healthy?

It means creating a spending plan, being aware of where your moola is going and making sure that it goes where you want it too!

It also means making sure you know what unexpected expenses really are. Is a car repair actually unexpected? Did you know cars need to be repaired sometimes? Did you know house maintenance has to happen sometimes? The reality is these are examples of expected expenses. These types of things throw off our spending plans all the time because we didn't treat them as that way.

How should we be handling them? By putting a little away for these types of expenses every month. Just make them part of your spending plan.

Everyone also talks about emergency funds. They say that everyone should have 3-6 months of income in an emergency fund. Please notice that it is income  - not just expenses. If you really need your emergency fund you want to be able to cover more than just your mortgage - right?

Emergency funds are important for financial stability. Let's keep them for real emergencies not for what are really expected expenses. That way if you lost your job or had a health emergency in your family you know that your emergency fund is there to help you through it!

Wouldn't that be amazing?

See you soon!

Heidi, Moola Mentor