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3 Part Series(2of3) – Part 2 Survival Mode: How do I stay alive and set myself up for recovery during our economic instability? Health-Savings-Account Full view

3 Part Series(2of3) – Part 2 Survival Mode: How do I stay alive and set myself up for recovery during our economic instability?

We’ve established that awareness of our current situation is a crucial step for financial recovery.  Now, there must be a change in our mindset and old habits. We may begin by identifying some practices in our life and alter them for the betterment of our future. Proper guidance to the path of recovery may only be obtained by trustworthy financial experts. What can these experts offer? Here is one sample: Should I pay my debt before saving? Emergency fund vs. Paying off debt

Emergency fund or Paying off your debt.
According to a recent study by CNNMoney, most Americans can’t afford a $1000 emergency expense. This is absolutely shocking especially with the high percentage of emergencies that are bound to happen. An emergency fund as cushion is unquestionably crucial to have as it allows you from getting deeper into debt or put you into a crisis situation (if you’re not already in one).

Although many of you have already heard this, here is some advice about building an emergency fund from well-known financial experts that you may know.

  • Dave Ramsey says: Dave Ramsey, whom I am a huge fan of, recommends that you have a fully funded emergency fund of at least 3 to 6 months of expenses to set aside. This is not investment money. It is insurance in case of an emergency to safeguard your family’s wellbeing as well as safety for you and your investments. Do not touch this unless absolutely necessary.
  • Suze Orman says: Pay the minimum balance on your credit card(s) and have an 8-month emergency fund savings. You need to have cash, not assets/investments, that can be liquidated.

Although these financial gurus emphasize the importance of building your emergency fund, it is important that you do not go into savings-only mode as that has negative implications as well such as losing considerable amounts of money on interest over time. Rather, you should have a budget and save for your emergency fund at your own pace.

Here is some guidance from Dave Ramsey on:
How do I create an emergency fund?  Build An Emergency Fund Fast!
Tools to get rid of debt: Ramsey’s Debt Tool

So, how do we stay alive and set ourselves up for recovery during our economic instability? Do not rely on simply increasing your income. Rather, find a financial expert to help you develop healthy financial habits. I highly recommend Dave Ramsey as it changed not only my life but millions of others as well.
This is just a snidbit of advice and guidance on how to handle your finances and I am very adamant on advising all people who desire to be financially stable to learn from experts like Dave Ramsey to be smart with your money.

Are you already dipping into your emergency funds to continue payments on your mortgage and other debts?
Part 3(9/2/11): Why Short sale? A leap toward your financial recovery.

Written by SSB


  • How to build credit and get top sceors at the same time (with time):Use your credit card for small things you need like food or gas.Pay in full each month.52% of Americans use cards this way.They carry the top sceors.Carrying balances is an easy way to destroy credit.You don’t want a low interest card. Why?This will only tempt you to carry balances.When you pay in full each month, you never pay interest.So let that interest (APR) be 99.9%. You’ll never pay it.You only plan it to use in emergencies?You need to set up an emergency savings account for this. Not a credit card.Again, you need to use your card to develop credit.If you don’t use it, the credit reports will show $0 balance no benefit.Use it for very small things, and pay in full, and get sceors that will amaze any future creditor


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