Tuesday, December 15, 2009

Personal Finance and the Land of Make Believe

"Fewer than four of 10 American adults have an emergency fund to fall back on in the event of some financial disaster," according to a nationwide Bankrate.com poll. And yet nobody seems to be the slightest bit worried. We still go about our daily routines buying lattes, going out to movies, and purchasing the latest gadgets. Who cares if we have a little credit card debt, or maybe a lot. It's not worth changing our lifestyle, right?

Wrong! As children we are raised to believe in happy endings, and fairy tales. Unfortunately as adults we learn that life isn't always fair, and bad things can happen to good people. You could lose your job tomorrow, then what? If a leaking pipe creates a breading ground for hazardous mold, could you pay to clean it up? What if you need a new transmission costing $3,500.00? What if Fido gets hit by a car and needs a $5,000.00 surgery? Can you afford those $6,000.00 braces for junior? Why did I have to get that $200.00 seat belt ticket? Emergencies happen all the time. We are all playing financial roulette with our lives, and everyone is thinking the same thing: I won't happen to me.

Well.... What if it does? Stop living in the land of make believe and start building you emergency fund now. If you don't you'll be sorry.

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