A financial emergency or a simple inconvenience?

Have you ever had something happen unexpectedly which set you back hundreds or even thousands of dollars?

Well, that unexpected thing happened to me a few weeks ago.

Our microwave died. After taking the microwave apart and doing some online research, my husband announced the official time of death was 6:08pm.

Seriously?!  

We spent the next few hours researching microwaves. We looked at different brands, the range of technology on offer, countless reviews and pricing. We agreed on how much we were willing to spend on our new appliance and that was that.

The next day, my husband went off to the nearest electrical goods store and picked up our new microwave.

Thankfully, this little fiasco was a simple inconvenience. Not a financial emergency.

Too many people would find this unexpected expense troublesome.

Too many people wouldn’t know how to get their hands on a few hundred extra dollars especially in this high cost of living environment.

And sadly, too many people would experience this as a financial emergency.

I don’t pass judgment, not for a second. We don’t get taught financial literacy in school. Unless your family is financially educated or you have the wherewithal to do your own research and educate yourself, it is likely you are living pay check to pay check. You may also have some form of consumer debt keeping you from moving forward.

But what if I told you that it didn’t need to be this way?

The simple answer is to plan your finances with intention. Create a budget!

The first step is to take stock – write down your income and expenses.  If you have consumer debt, make a solid plan to “snowball” or “avalanche” them away.

Once you know your numbers, set yourself a plan for the next 3, 6 or even 12 months. I budget for the year ahead and it simply reinforces where my priorities lie, enables a sense of peace and gives me optimism for the future.

Having an emergency fund is an integral part of your budget creation; you move away from having financial emergencies and encounter mere inconveniences.

Everyone’s journey is different. I get that.

But what if every journey could give it’s explorer a sense of financial security. Wouldn’t that be nice?

Oh and before I forget, our new microwave is brilliant.