Being that I am a personal finance expert, it would probably be best for my image if I act as if I am never late on a bill. Well, fortunately for my readers and viewers, I don’t play much into that image. As I said in my previous blog, keeping secrets is what got most of us in the poor money management habits many have today. So, that said, let me tell you about this money pinch I have found myself in and more so, let me tell you how I plan to get out of it.
Let’s get something straight first. I am in no way broke. I just need to get my hands on some cash. I stash money in a variety of places to make sure I can’t get to it too easily. I give myself a certain amount of money every month once I get paid from clients. I pay consultants who may have helped me provide a service to a client and then I save or invest the rest. When I get in a pinch, I have a standby account or an emergency fund. Today, on the last business day of the month, I am about to transfer funds from that emergency account. This is because I have a client that has not paid me for services rendered since September. I had a cash reserve and some payments from other clients that has floated me for the last 3 months or so. But now, I have to hit the transfer funds button. It pains me!!! It pains me so much that I am writing this blog about it, instead of doing it.
An emergency fund is just that– an emergency fund. It should pain you to take money out of it, even if it is to pay your rent or your child’s daycare. OMG! This is so painful, I don’t know if I can even post this blog. Is this really happening?! Ok, Ok, let me pull myself together. I can not go 30 days late on a bill, so yes, I must push the transfer funds button! I will pay it all back as soon as I receive the check from my outstanding client.
Lessons learned here are:
1) We must have a safety net; we must stash money for an emergency or loss of income because it will happen to all of us.
2) We must be very disciplined about not touching our emergency fund.
3) We must set criteria for when we can use our emergency fund, i.e. when rent, mortgage or a bill that is reported to the credit bureaus is about to fall 30 days late.
4.) We must earmark funds that are to replace the monies borrowed from the emergency fund, i.e. $200 from each next paycheck, etc.
Ok, gotta go. The pain in my chest will feel better once I pay a few bills. And it will disappear completely once I repay my emergency fund in a couple weeks. Standby…
Keeping it rich,