Past Due: Radio 139 – Stress Testing Your Finances
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Money and stress just seem to want to walk hand-in-hand, don’t they? Ever think about the amount of stress your current financial plan can withstand?
Today, we put on our risk management hats and talked about how to expect the unexpected. Vehicle repairs, medical expenses, and job losses can shake, rattle, and roll our game plan for saving money and paying off debt. If we really think long enough, though, we can probably determine how likely those “unexpected” expenses are to occur.
I shared a simple mathematical strategy for determining how much money to keep on hand (or begin saving through your monthly cash flow) for the negative financial events you might face in the next year.
Probability of Event Occurring x Total Cost of Event = Reserved Funds for Event
We also discussed how to incorporate planning for Murphy’s Law in your annual goals. Hot water heaters, transmissions, and emergency rooms beware!
Goal Planning Worksheet – excellent way to organize the seven areas of your life and what you desire to accomplish this year
Episode 136 – Do-Overs: Buying A Car – Check out why repairing a vehicle could save you thousands versus buying a new one