Stuff Happens
You know it does. It is so easy to ruin the best thought out plans. Your transmission breaks down $2,400. Water heater busts $400. You just closed on a new house and lose your job.
While each of these events is unexpected the fact that these things happen is not. So how do you deal with planning your financial future when fate is hanging around waiting to yank the rug out from under you?
Have a fund for the unexpected. What kind of things can disrupt your financial plan? Figure out what kind of money you need to deal with the occurrence. I try to have six months of expenses set aside. I used to think three months was okay until I had a time where I couldn’t find a good job for four months. Open an account with easy access and a high interest rate and starting saving. If you don’t have a fund set up for these unexpected events you will find yourself pulled under by high interest credit cards.