Creating a Successful Debt Emergency Plan

You never think it could happen to you, until it does. Disaster strikes, a medical emergency appears, you lose your job, etc. Anything could happen, and at any time. Make sure you are ready for anything and everything. Organize Your Finances This should already be done, but if it isn't, get started right away. Having your finances organized can help you clean up an abundance of financial messes and will give you the clear mind knowing exactly where all your money is going. Also by organizing your finances regularly, you are able to see debt coming a lot faster, and then being able to prevent it. If you aren't sure where to get started, read Money Management Tips. Separate Bank Accounts After you have your finances in order, you need to have separate bank accounts set up. When you have separate bank accounts, you are able to split up your income into different levels of saving. You can put some into retirement, savings, emergencies, spending, etc. This helps you spend only what you allow yourself to spend, and also makes it so you have to contribute money into your savings and emergency funds. Sell Old Items After people stop using something they purchased, a lot of people decide to either keep it and let it collect dust, or simply throw it away. Learn to take these unused items and turn it into quick cash. This can be a great hobby, and can help you pay for a lot of unseen expenses as well. By doing this you are clearing out the clutter, and also helping yourself financially at the same time. Live with Less The mind sees material things that are nice, shiny, & new and creates a certain want for these items. Learn to settle for less, until you can actually afford it. After you start to buy used items or simply stop buying the things you don't really need, you start to re-program your brain. You start to realize that you don't really need those material things, and you slowly begin to not want them as well. In the long run you save hundreds, if not thousands, of dollars that can be put towards things that truly matter, like your future. If tragedy did strike, you have money saved up and ready for anything life can throw at you.