I love the name
"Freedom Fund" by author Mary Hunt (http://www.debtproofliving.com/). What is it you ask, well it's
setting up a special account to make monthly payments into your savings for
things you don't pay for monthly. If you pay $600 every six months for car
insurance, then make a $100 deposit into savings every month. Then when the
bill comes you have the money there waiting for you. It's the freedom to not
have to worry about those big bills that come. You can preplan for purchases
like replacing tires. This Freedom Fund is your chance to make a readily
available pot for those stressful payments and purchases. You may be thinking -
hey but that's an emergency fund. Is your car insurance an emergency? Did you
know your insurance would be coming due? Then THAT is NOT an emergency. Your
emergency fund should be a separate amount, maybe in a different account and it
should be protected as much as possible from inappropriate expenses that you
should have known were coming.
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