Do You Have a Financial Safety Net?
July 21, 2020
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I was talking to a friend the other day and she said that everyone should have an emergency fund that would cover their family’s expenses for 6 to 12 months!
I don’t know about you but when she said that I was speechless!
What was she talking about?
I had never ever in my life thought of an emergency fund. (To be fair, I grew up in Germany which is a country with strong government safety nets and social support so emergency funds are not as high of a priority as they might be in other countries in the world.)
So, there you are, I had never thought about a financial safety net, but I also never expected to be in a pandemic that would turn our world economy upside down. My friend’s words threw me into a whirlwind of unpleasant emotions: fear, panic, worry, guilt, anger, stress, anxiety, hopelessness, ….
I trust that my family will be fine. My husband and I have several ideas and solutions on how we will bridge these lean times but you know what my second thought was?
I need to teach this to my son!
He needs to grow up with a financial parachute. I really don’t want him to wake up one day with the economy as insecure as ours is at the moment and not have any securities.
If our son starts to learn about money management now that he is still little, he will be able to develop skills and strategies that will help him to save enough to have an emergency fund, … just in case. And if he is lucky and never needs it then he will be able to have some extra luxury during retirement. Win Win!
I am grateful for the lessons I am currently learning and even more that I have the time to teach them to my son!
Sending You Much Love & Laughter
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