I know nurses who have lost their jobs recently, and that must be terrifying for them.
No matter where you work, losing your job suddenly and without notice is never an easy situation.
I also know people who searched for jobs… for months… without success.
This will push anyone into a depressive state.
Especially if you’re trying really HARD to find meaningful work.
As a nurse, we are especially skilled at taking care of and saving the lives of others, but more often than not, we don’t know how to save ourselves when it comes to our finances.
Learning this skill…. yes, it’s a skill….. you don’t have to feel bad…. of managing your money is a powerful way to empower yourself to live your best life.
And yes…..
It starts with having a WORKING budget.
A budget should cover every aspect of your life that requires money.
An emergency fund is one such area.
The value of an emergency fund cannot be overstated.
The more stable your household income is, the less likely you’ll use your emergency fund.
But there’s no guarantee.
So this cushion will give you breathing room and peace of mind.
If you’re part of a two-income household or you’ve had a steady job for several years, then a three-month emergency fund will probably be just fine.
But if you’re a one-income family, you’re self-employed, or you earn straight commission, then a six-month emergency fund is a better bet since you’d be hit hard by that loss of income.
You don’t want to be stressed out and scrambling to pay bills while you look for another job.
You should also aim for a six-month fund if someone in your household has a chronic medical condition that requires frequent visits to the doctor or hospital.
Even if there’s room in your monthly budget to pay for the expenses, it’s good to be prepared in case a big emergency hits.
Some more emergency fund tips:
- A money market account or a regular savings account is a good place to save your emergency fund.
- Your emergency fund is not an investment. It’s insurance. You should never put your emergency fund in something that can go down in value.
- And you should never put your emergency fund in something that charges you a penalty for taking it out early, like a CD.
Your emergency fund is the money you’ve saved for those unexpected costs that would otherwise blow your budget.
It may feel like a ton of money just sitting there doing nothing, but it’s actually doing a lot.
It’s your insurance policy against the unpredictable.
And you need to have easy access in the event of a real emergency.
Here are 3 reasons to pull from your emergency fund:
- Is It Unexpected? A cruise to the Bahamas does not qualify as an emergency.
- Is It Necessary? If you’re tired of the kitchen countertops or want to upgrade to the latest and greatest cell phone, think again.
- Is It Urgent? Don’t go changing the dishwasher if it’s not broken.
Also…. always remember to replenish your savings as soon as you get back on your feet.
You never know when you’ll need it next.
“If you keep doing the same things, you will keep getting the same results. You are where you are now financially as a sum total of the decisions you’ve made to this point.” ― Dave Ramsey
Sharing is Caring. If you found value, please feel free to share.
Until next time…..
Agree or disagree? I love your comments! So please let me know your thoughts in the comment section below.
I look forward to hearing from you!!!
Althea
I help Busy Nurses & Professionals Become Good Stewards of Their Financial Resources, and Show Them How to Practice Wise Financial Discipleship to Create an Amazing Life and Thrive!
PS. Financially, most of us know what to do; we just have trouble doing it. That’s where a coach can help. CONTACT ME for a FREE 15-minute consult.
