Michael Newman’s latest ‘e-Wealth Daily’ article is titled “You Never Know When You’re Going to Need Extra Money”. [‘e-Wealth Daily’ Article]


Michael Newman’s latest ‘e-Wealth Daily’ article:

You Never Know When You’re Going to Need Extra Money

You never know when a financial emergency may arise. Heck, you could be returning to your office from lunch when all of a sudden a parked car jumps out at you, forcing you to smash into it! All of a sudden, you’re looking at a sizeable bill showing up out of nowhere.

Now, I know you might not think parked cars are a threat to your wallet, but trust me, they are — I speak from experience. You see, yesterday, I was returning from a lunch appointment, when the parking lot I pulled into appeared to be full. However, instead of taking my time to look for an available space, I tried to make an impossible turn into the first one I saw. The result was a scratch on my bumper and a little more than a scratch on the bumper of a colleague’s new car.

Now, you see, my lunch has gone from costing me $20 to much more than that — an expense I did not and could not foresee. It is my estimate that my colleague’s car will cost me $300 to $400 to repair, and I’ll have to pay him as soon as he gets it fixed — which could be tomorrow, or in two weeks from now.

Although $300 might not be a ton of money in the grand scheme of things, it can be a lot when you weren’t prepared for it. Just imagine how excited you’d be if you were handed a $300 check for doing nothing…now imagine how frustrated you’d be had you lost $300 just as quickly and unexpectedly.

The thing is, there is no way to predict when you’ll be hit with a bill you didn’t plan on. This is why establishing an emergency fund is extremely important. Because I have an emergency fund, I’ll be able to pay my colleague quickly without it affecting my other expected expenses or regular spending habits. Of course, I’d rather put the money towards something else, but things like this happen.

If you haven’t got an emergency fund stashed away, I’d suggest starting one. Take about five percent to 10% of each paycheck and put it away, until you have about $500. This way, if a parked car ever decides to attack, you’ll be ready!

e-Wealth Daily

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The e-Wealth Daily Bulletin brings you daily tips, advice and breaking news related to home businesses, small businesses and internet marketing. Our team of experts gives you the information you need to take your business pursuits to the most profitable level. Founded by Adrian Newman in 2003, the e-Wealth Daily Bulletin and www.ewealthdaily.com are a division of Lombardi Publishing with online newsletters reaching over 100,000 subscribers each month.

* IMNewsWatch would like to thank e-Wealth Daily for granting permission to reprint this article.

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