No one wants to look at the future and see a downward spiral in any area of their life; especially with their health. Facing a minor or major health crisis is stressful and if you have to worry about finances also, the stress can hinder the bodies healing capacity.
Back in the day most jobs had the added bonus of sick days entitlement but many people now are working in casual positions, sometimes two or three casual positions. Or perhaps part time or even contract work. Although sick days are counted for in the dollar amount received the reality is quite different as each dollar is used in the day to day the financial implication associated with taking time off can be dire. Catching a cold or even facing a week in bed with the flu can be something you can cover if you have an emergency savings account. Covering a long term illness maybe a more challenging goal but fingers crossed that your sick days are few and far between and the plans you make now to cover your flu days will add up over time to a significant figure that will be in reserve should the need arise.
First things first… open a high interest, internet banking only account
Opening one of these accounts will make it more difficult to use the money for other things with the added bonus of making money on that money!
Set your target low and give yourself a fighting chance to hit that goal. Figure out the expenses you would need to cover if you were down for the count for one week, then make that your goal. When you reach that goal, add another week to it, then another and another.
You don’t need to sweat bullets trying to achieve a six month emergency fund goal right off the bat. If you only have to cover $500 of costs for one week of illness then you can work through your budget and find small savings to accomplish that amount. Look for around $25 a week and you can get there in only ten weeks. Maybe you can only find $10 of savings but any amount is worthwhile starting with. Celebrate it when it goes into the savings account. Remember, you’re making money on that money. Every little bit counts.
Instead of finding savings within your budget find savings in your expenses. If you’re not one of our clients on a debt agreement, having already had us negotiate frozen interest and a reduced payment amount, then pluck up the courage and request a rate reduction on your credit cards. If you are carrying a balance then reducing your interest rate will save you money each month. Add that money to your untouchable account! Even better calculate the amount of interest you will be paying then transfer over to an interest free card. Pay it down within the time frame and put the portion of the interest saved into the account and a portion towards reducing the debt faster.
No credit cards? No problem, save money shopping around for a better deal on your insurance covers, trim unnecessary bills or get a better deal from your internet provider. Need more ideas? Go through our 60 ways to find savings blog. Before you know it your emergency fund will reach your first goal, then the second. You might get sick and knock it down again but that’s what it’s there for right?
If you’re facing financial hardship we are here to talk about a solution. Call us on 1300 887 211 or Book a Free No Obligation Phone Consultation with our friendly team and we can discuss debt management options specially focused on your personal situation.