Imagine you need a quick extra $100 for groceries this month. You aren’t able to take that money from any other account but your grocery budget. Could you make that happen?
This is a big lesson we have learned the past couple of weeks.
You need margin in the budget. Creating margin, or a buffer, in your budget gives you another level of comfort, breathing room, to Drive your MoneyBus.
How to create budget margin:
- How filling the accounts to provide for the family and your needs has given us more freedom.
- When the cost of gas goes down, continue putting the money in the account to give you some breathing room for future purchases.
- Taking time to make the budget gives you opportunity to make your choices and set yourself up for success
- Living your most enriched life, within your means, you are creating freedom for yourself.
- Find ways to create margin within one portion of your budget will give you more freedom.
- When you change the focus and look to consume less, you are living enriched.
The March challenge:
- This month we are going to downsize from our rental home to an apartment.
- 40-50% of size decrease in the home is the goal. I am working to eliminate 40-50% of our stuff. The junk.
- You can read more about the challenge, and share your comments by following along here.
- Week 1 is focusing on the bedrooms. I’ll eliminate the clothes we haven’t worn, the clothes that don’t fit properly right now, and the shoes we haven’t worn in years.
Determine your Emergency Fund
How much do you actually need in your emergency fund? After this experience, of an emergency trip home for Grandma’s funeral, consider;
- Make a high-level plan. (remember those earthquake drills in elementary school…) Just a bare bones idea of the travel involved, the hotels, food, and other necessities and write out the numbers on a one-page form. Place this form in your budget/binder book.
- Decide really how much will you need in the moment of crisis. Write it out on the page in your budget binder.
- Open a new savings account specifically for this situation. Open the account today, either online or in person.
- Start the savings for this. Make it automatic. $25/ a week can make a big difference in a quick year or less.
You know about the Think Enriched Crew, but are you in yet?
Have a question. Send me an email: firstname.lastname@example.org.