Half a Paycheck ~ Would you be ready?

Good Morning friends! My apologies for not posting much. Ever since our move I have been struggling with Coupons and saving big bucks! I've been saving but not like I used to or in ways I felt were worth posting. I've learned that the area you live in makes a huge difference when it comes to specials and great coupon deals.

My topic for today is Would you be ready if you were faced with a half a paycheck come next payday? As most of you know that's what my family and many other Military and Government workers were faced with this month. Thankfully that isn't going to happen but it sure got me to thinking more about it.

Ideal would be a 3-6 month emergency fund set aside for times like this. Realistically that is so far fetched for most people that instead of setting small goals and working up to that 3-6 month amount we instead don't do anything and stay in this state of being unprepared.

As Dave Ramsey would say "Get $1,000 in the bank asap". Well that can be hard for most people. They see that and think "I don't have that kind of money" so they don't do anything. I have heard this so many times I've lost count. My suggestion is to start where you are. If it means $10 a paycheck then make the commitment to put $10 each paycheck away. Instead of doing nothing start with something even if it is small.

Here is where you can start today so that down the road you can be prepared.

Set smaller Emergency Fund Goals:
1 - Save up 2 weeks worth of Grocery money
2 - Save up half a paycheck.
3 - Save up a whole paycheck.
4 - Save up two paychecks.
5 - Save up three paychecks.
6 - Save up four paychecks. (for us 4 paychecks is two months income)
7 - Three months income.
8 - Four months income.
9 - Five months income.
10 - Six months income.

Save your change. We save our change for rainy days and/or months I mess something up in the budget and we need milk three days before payday and the grocery money is all gone. (yes that happens to us all the time) Put all your change in a bucket, jar, or baggie and once a month turn it in and deposit it into your emergency fund. Even if this is the ONLY thing you deposit each month I'll bet you'd be surprised how fast you can get a small cushion built up.

Another recommendation coming straight from experience. Have a safe place for your emergency fund that is out of reach! We have an Ing Direct account for our Emergency fund. It is gaining interest and if we need the money it takes 2 days to get it. A regular savings account is too easy to get to for us. With the Ing account there is no grabbing out $20 for and "Emergency" trip to Starbucks or for Pizza because you don't feel like cooking. Having our Emergency fund slightly more out of reach has been key for us. I didn't realize how important that was until we set it up and started using it. **Note in most emergencies that you would need this money for you could wait 2 days for it.**

Having a stockpile of items on hand can also help if you are faced with a Half a Paycheck. I like to have 1-3 months supply of toiletries on hand. Along with things like pasta, canned veggies, cereal. Things where if faced with a shortage of cash I could pick up Bread, Milk, Eggs, and Hamburger and we could go a long way! Build up your stockpile slowly if needed. Start with buying two extra cans of Spaghetti Sauce or noodles on your next shopping trip. Stockpiling and saving money take time! Don't try to do it all at one time or you'll get overwhelmed.

One step at a time! One dollar at a time! One can of food at a time!

~ Melinda ~