It is the last week of Financial Literacy Month 2018, and with 5 days until April concludes, I hope that the first quarter of the year has been met with financial success. Nonetheless, whether you have achieved your financial feat, or are still working towards the finish line, I am beaming with pride. To help continue your education, below I present the transcript from a chat I participated last Wednesday, April 18th: Your Financial First Aid Kit: Actions for Economic Preparedness
Hosted by Winnie Sun, The Wealth Whisperer (@SunGroupWP), on Twitter, the nearly two hour-long chat was dedicated to helping individuals understand the importance of economic preparedness, and how a lack thereof can have devastating effects. It was an honor to tweet alongside fellow women of all intersectional identities, as well as financial professionals whose passion for increasing financial literacy awareness mirrors my own! As such, I encourage you to click the aforementioned link, as well as let me know what your responses would have been! Q1: In your opinion what constitutes an emergency that warrants you tapping into your emergency funds? #WinnieSun Wealth With Whitney: Laptop crashing, unexpected purchase, and replacing broken, essential, items around the house. #WinnieSun Q2: How much should we have earmarked for our emergency fund? Do we change this amount over time? How do you know how much money you should save for the case of an emergency? #WinnieSun WWW: If one's current financial status allows, having roughly $1,000 saved as an initial benchmark is encouraged as this amount should have been reached over time. Additionally, your fund should always be increasing, so as to be prepared to cover unintended costs. #WinnieSun Q3: Would it be a good idea to have different “levels” of emergency funds to prepare for different levels of emergencies? Why or why not? #WinnieSun WWW: Because every emergency is as unique as the individual, allotting set amounts to emergency funds accounts will vary. Nevertheless, it is always beneficial to have rainy day funds as a whole. #WinnieSun Q4: Why is it so important to have a financial plan in place in the case of emergency? #WinnieSun WWW: Too often individuals find themselves battling crippling debt due in part to poor financial planning. Although there are factors that contribute to such poor habits, the first step to financial security is preparedness. Personal financial planning is important. #WinnieSun Q5: What information / documents should you keep in a safe place? Do you keep backups of these documents in a separate location (safe deposit box, the cloud, etc.) #WinnieSun WWW: Birth certificates, life insurance policies, social security cards, copies of medical records, wills, etc. should be kept in safe and secure places. Likewise, clear copies should be made of these documents and kept hidden, yet easy-to-find, too! #WinnieSun Q6: Is it smart to stash some of your emergency funds in physical cash? Why or why not? And if so, what ratio of money should be saved in cash vs. in an account? #WinnieSun WWW: While I understand that many still fear commercial banks, I advocate opening bank accounts. As such, emergency funds should be deposited in an account of your choosing, and it is crucial that customers review banking policies and FDIC policies to quell fears. #WinnieSun Q7: What are the first steps to take if you are unexpectedly let go from your job, business fails, or if you endure a dramatic pay cut? #WinnieSun WWW: Review current funds available and map out a 6-8 month survival plan. Once your budget has been set, talk to a financial professional (if you can afford one) to learn how to stretch your dollars even further! #WinnieSun Q8: What technology / apps do you like to use to keep your finances organized? #WinnieSun WWW: BillGuard, Goodbudget, LevelMoney, and Mint! I even wrote a piece about the following apps, and more, here: https://wealthwithwhitney.weebly.com/home/apps-money-management-and-you … #WinnieSun Q9: What is your financial strategy in the case of market volatility? How can market volatility be used to your advantage? #WinnieSun WWW: Do your best to learn what "market volatility" is, and its effects, while continuing to work to ensure that steady income is being earned. #WinnieSun Q10: When is insurance a good idea? (i.e. renters insurance, flood, earthquake, / life insurance, etc.) #WinnieSun WWW: Insurance is a must-have! Financial protection is important and truly helps to alleviate debt, as well as alleviates collective family stress due to scrambling to pay leftover expenses. #WinnieSun Q11: Does your business or career have an emergency plan in place? #WinnieSun WWW: I am thrilled to be enrolled in a wonderful benefits/retirement plan that has "employee-matching". I am comfortable knowing that I have a financial plan in place in addition to the independent saving I do each pay period. #WinnieSun Q12: What investments/items can you purchase or be educated on to increase your future safety/peace of mind? #WinnieSun WWW: Financial organizations have been gracious about providing free materials to interested learners, therefore I encourage downloading free workbooks + worksheets. Likewise, research free or cost-effective workshops geared toward personal financial planning. #WinnieSun Q13: What money obstacles have you encountered in the past and what did you learn and apply to help minimize the financial impact of emergencies in the future? #WinnieSun WWW: As an Economics major with all of the resources at my disposal, I still possessed abysmal saving habits. After nearly hitting rock bottom, I had to open my notes, employ techniques, and practice. It was hard work, but I was successful. #WinnieSun
1 Comment
Jerry
4/25/2018 17:04:06
I am definitely there with you about the copies of documents. I have hard copies of completed tax returns for the last ten years which helped me out this year when I went to an accountant to prepare for this year's returns.
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