Faced with a financial crisis, be it unemployment, looming medical bills or any event that will radically alter your standard of living, you need a quick start plan to get into a savings routine. This is happening to more than a few prople right now, and here is the plan I’m proposing.
Part 1. Current Financial Status: What is going on with your money right now?
- Get a mint.com account – load all of your credit cards, bank accounts, etc, and go through the last few months of uploaded expenses. Where are you spending your money?
- Figure out the bare minimum amount of money you need to survive. This includes:
- Car Payment
- Cell Phone and/or Internet
- $100/month for food
- Medication and other vital expenses
- Look at your savings (if you have any) and figure out how many months you can get by spending money on just the necessities.
However long that is, it’s time to start cutting back on your expenses. Some easy places to save a ton of money are:
- Credit Cards
- Cell Phone
You can save money on your mortgage and utilities, but those are more complex, and will be discussed later. Next, you need to start building your stockpile.