Emergency Fund

Even if you are juggling bills now, it's VERY important to start an emergency fund. I recommend $100-200. This is money that is set aside for things that come up that need to be taken care of right away. For example: car repairs, furnace breaks, waterheater gives out, etc. Either keep it in an account where it would be easy to either transfer to checking account or transfer as payment on credit account or if necessary, in cash.

Since we are keeping a spending journal it should be easy to see where to cut down on spending and put that money into an emergency fund instead. Most areas where it's easy to cut spending are eating out (especially lunch),clothing & entertainment.


$10.00 doctor co-pay
3.69 Beaner's (coffee)