With the things going on lately, we have realized our priorities do not fit with where we are financially. We have a robost retirement fund, our emergency fund is mostly drained and our investments aren’t fully what we had planned on. Also our savings is not where we want it to be either.
Seeing Things Differently
We are reevaluating our financial plan. We need to build a good strong emergency fund. Our last one was good for indidvidual pop up things, but we need to build one for if we aren’t able to work for six months. Our savings needs to be built up. We try to balance investments and savings while having a good emergency fund, but we are seeing where we thought we were is not where we are. Many in the financial advise business would say you need to do one thing at a time and they each have their own idea of what that looks like. Thankfully I am not a financial advisor.
How Are You Doing This?
Our plan is to allow our savings accounts to build with minimal effort from us. We have one that gets monthly income from other sources plus interest and we are going to stop contributing extra to that. For our other savings we are going to build more to that verses letting it sit there and just collect interest. These are our general savings and vacation or reserve fund accounts. For our emergency fund we are going to start significantly contributing to it. While doing this we are going to continue to add to our retirement funds so they keep growing. We are lowering our investment contribution to fund our emergency fund. We will use the dividents from the investments we have and the credit card we use for our monthly bills gives us 2% into the investment account.
Staying on track and focused can be very challenging especially with having multilple goals. Be sure you know your priorities and reevaluate once in a while.