All of us are confronted with a change in situation. Life is not always an easy task to handle. You have a new baby, a new car, a new job, a new business, a home with a swimming pool, a clean bill of health, etc.
As soon as you can realize there is a change, you want to make certain that the boat does not sink. In fact, you want the boat and all that goes with it to be in top condition. There are a variety of things that can lead to a situation of financial distress in your life. If you are struggling from lack of money, this is addressed in part 1.
If you cannot establish a stable and sound financial position, there are a variety of things that can be done to help yourself get back on track. Just as serious as your financial crisis is, it can take a year or longer to fix. It will not look like it happened simply because you did not act on it. Even those that prepared in advance for emergencies found themselves in a crunch once their bank account was drained or they needed to make a vacation at the last minute just because cash was not readily available.
Being prepared can help you prevent the unexpected. For example, you have probably heard the term “an ice encrift.” This is used to illustrate that you can save for a while by putting away money each month for what might be called an “ice enc796” – an savings account that you can always access if you do not immediately have the funds available. This type of account is not made to be used when you need it. It is there by your choice. You take the money out when you need the money and it can be accessed when you need it. It is this freedom that makes a savings account the best type of account available.
If you are at risk of not being able to save any money you should be considering a savings account. You want to be prepared for an emergency in case something critical happens. If you need to save then having the money available to you comes first. You do not want to rely on some sort of credit as backup. Instead, you want to be able to put money into your savings account. Some do this through just putting it into a regular bank savings account – the type that most people have been on the doldrums for ten years.
You might want to invest your “actual dollars” in more aggressive investment vehicles. You do not have to invest into the stock market or bonds.
If you think about how most folks build up substantial stock portfolios, it should make you think more about your financial health more. You do not have to throw numbers at the wall to be able to make a living.
What you want to do is put money to work for you. This does not mean that you have to put all your eggs in one basket. It means that you can diversify your interests and be able to meet wants by saving for things you want.
Savings accounts give interest and can be used for your wants and needs. Keeping money in a savings bank account, which always have a low initial interest rate and a higher interest rate the longer you keep it in there, can be one of the smartest financial moves you make.
Keep in mind your hard-earned money is at risk when you are putting the risk becomes your reward. You can be the Lloyds of London in a year when you lose your job.