Baby Step #1

Maybe you are familiar with the seven Baby Steps. Maybe you're not. Baby Step #1 is to save a thousand dollars and put it into an emergency fund. This is not a huge amount of money, your paycheck is probably more than that. However, this is how you change your behavior around money. And you start winning.

Starting is the first step, and it can be the hardest.

I hear it all the time, my parents didn't teach me about money. My dad read Money magazine, but I never picked it up. We did not talk about money, it was a taboo subject. My folks aren't good with money, so I'm not good with money. The banks loan me money, so I must be doing something right. My credit score tells me I'm good with money. I wish we would have covered this in school. I spend all the money I get. I save all my money, I don't know what to do with it. If the loan is approved, it means I can afford it. I can't afford to take a day off, I have bills to pay. I have to take this vacation with my kids. My kids have to do all these activities. We have to have a safe, dependable car to drive.

How on earth am I going to save up a thousand dollars? Why would I want to save up a thousand dollars? Does a thousand dollars even cover an emergency? Isn't this what credit cards are for?

There is one situation that you need to have completed before tackling the thousand dollar emergency fund. Get caught up on your bills. Once you are current on everything, you can start putting away money.

If you are living paycheck to paycheck this can seem like a daunting task. Especially if you have numerous debt payments hanging over your head. Here's a brief list of things to get you started:

• Pay only the minimum due.

• Quit buying non-essentials.

• Stop contributing to your employer's retirement plan.

• Cancel a subscription or 2.

• Get on a written budget (EveryDollar is a great tool)

• Sell some of your stuff on Facebook Marketplace.

• Cut up your credit cards, do not add to your debt.

Once you get a bit of a handle on where you are at financially, it can make a huge difference in how you feel. What might have felt impossible, now feels possible. It may only take you a month or two to get this step completed. If you were to stop here and just continue the course, you would be ahead of most Americans. Only about 10% of adults could cover an emergency of $1,000. You do not have to be a statistic, start now and get on the path to a brighter financial future. If you need help, please reach out or schedule time with me here: https://calendly.com/smithfc1210/consultation