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Debt Panic and Budget Busters
By Molly's Brother | December 11, 2006
There’s been a lot of talk around the blogosphere lately about the Expensive Unplanned Event. In reading these posts, I’m reminded of a quote by Suze Orman (paraphrased): Problems don’t cause a lack of money. A lack of money causes problems.
In the past couple of days, stories of budget busters have appeared in the blogosphere. MoneySmartLife talks about the instant rearrangement of financial priorities that comes with a cracked windshield. Tricia over at BloggingAwayDebt shares the good news and the (possible) bad news that comes with the check engine light.
I can relate to the two individuals above. I remember a couple of years ago, a parking ticket caused a momentary meltdown. I had no idea how I was going to cover the measly $30 ticket. Even though the deadline for paying it was three weeks off, I remember laying awake at night in full panic wondering where I was going to get that money. (Eventually, as it usually does, everything turned out fine.)
Even though we’re in the throes of the Holiday Spending Season, it’s always a good time to think about developing your own financial plan to guard against financial emergencies or the expensive unplanned event. Structure your finances and your life so when that next unexpected expense crashes into your day, it won’t bust your monthly budget.
Topics: Emergency Fund, Your Budget |