Be Prepared. It's Gonna' Rain.

Folks, it’s gonna’ rain! It’s a fact and you need to be prepared. We all live in a world where people get laid off, people get cancer, transmissions go out or insurance companies mess up paperwork. I’ve heard that the average person will encounter some major financial crisis every ten years. It could be something I just mentioned or countless other emergencies, but the fact remains….you need an emergency fund.

When my financial counselor, Dave Ramsey, is discussing this important issue, he’s often told that he is being negative. People will tell him to “be positive”. His response is, “I am positive! I’m positive life is going to smack you in the face and you won’t be prepared without an EMERGENCY FUND.”

He also says that women have this little place in their abdomen that relaxes when they know they’ve got a little money saved for emergencies. Most men don’t have this because we’re often times more risky (or stupid). However, when women know they don’t have an emergency fund, this “little place” tightens and causes them lots of discomfort. It makes their brow wrinkle, lips tighten and their overall attitude less than pleasant. It would be in your families overall best interest to get an emergency fund. Considering most divorces today are a result of problems involving money, I think this is good advice.

Don’t misunderstand me. This is not a new widescreen TV fund or a neeeeed to go to the Bahamas fund. This is a fund for emergencies (unexpected events) only. New tires, a new roof, even a new car are not emergencies. They wear out or break eventually and we know we’ll need to replace them. This is predictable so save up.

Ideally, we should all have three to six months worth of personal expenses saved in a good money market account as our emergency fund. But, start with $1000 baby emergency fund. Have a yard sale, take some overtime, do whatever, but get that emergency fund started. Cut up the credit cards and tighten your belt. It’s not easy…but it’s worth it!

One of my favorite sayings is, “There’s not room for everyone at the top, but there is room for anyone.” I get out of this, that anyone can succeed IF they choose to make the right decisions, work hard and never give up. One of the right decisions is to have an emergency fund. Regardless of your income, your circumstances, etc….you can do it if you make it a priority. It’s not easy….but it’s worth it.

Listen to Dave live every weekday on nearly 300 stations around the country, XM or Sirius satellite radio or for free on the internet at www.DaveRamsey.com.

(All of the above information and advice has been stolen from Dave Ramsey, whom admittedly stole it from your and my grandparents and God.)