Saving For a Rainy Day

I really enjoy watching WKNO. It is a very educational program.  This past Sunday, I watched and listened to the financial guru, Suze Orman provide information about what to do with our money. Of all the topics discussed, one topic stood out for me-saving enough money to pay bills for 8 months. Wow! I realized that I am financially insecure.

Eight months worth of savings? That's a lot to take in.  I am not saying that this is not great information or a great idea. Nor am I saying that I would not try to do it but I am still working on one month worth of savings. As I think of how to make this possible, my current debt keep surfacing. I need a plan. 

My Plan:

1.) Find out about everyone I owe. Currently:Savings- Debt= Debt. Goal: Savings-Debt=Savings.

2.) Write down my fixed and variable expenses to see how much I am really paying to live. This would let me know where my paychecks are really going..

3.) Write down my monthly income.  This will help me to evaluate what I can really afford.

4.) Create a budget. This includes contacting creditors and making payment arrangements for past due bills. This will help me to control my spending. For instance, instead of going to Wal-Mart, spending money, and then recording what I've spent, I can reverse this action. I can follow traditional ideas and start  writing down the amount I am willing to spend and purchasing  items that are less than or equal to that specific amount.

5.) Find a way to make additional income. Explore job sites. Explore work at home sites.

6.) Reduce the amount of times in which I eat out. I can start taking my lunch to work instead of buying at restaurants. The average combo meal costs $7.45.  Let's say that I ate out for lunch 3 days out of a week, this would cost me a total of  $22.35 for that week. Let's say I kept the same pattern each week-which I usually do- this would cost me a total of  $89.40 for the month. If the pattern continued each month for 6 months, I would have spent a total of $536.40. If this pattern continued for the year, I would have spent a total of $1072.80, so forth and so on. 

I think most of us, including me, neglect to internalize our actions. When Suze Orman said, "You are your best financial advisor",   she was talking to me. I am not saying that it is wrong to eat out for lunch. I am only saying that I need to have balance. I need to feel financially secure enough for myself, my daughter, and my future grandchildren.

7.) Do not become overwhelmed about my debt. I think that I will take things one step at a time. Be realistic about my present circumstance. Follow my plan and re-evaluate it to see if any additional changes are needed.