1. Minimize use of credit, if possible.
2. Start a savings program if you don’t already have one.
Even if you can only save $10 per week, that’s $500 more per year than you would have had if you hadn’t saved.
3. In addition to a savings plan, set up an emergency fund.
For example, if a storm topples a tree on your roof, not only will you have to remove the tree, you may encounter repairs such as a damaged roof, siding, windows, or perhaps even structural issues. While home insurance may help to defray some of those costs, insurance won’t help when your refrigerator conks out prematurely.
How much should be in an emergency fund? The rule of thumb is that it should be large enough to cover at least 3-6 months’ worth of expenses. If self-employed or your income varies, it is recommended that your emergency fund be large enough to cover at least 6-12 months’ worth of expenses.
4. Develop a budget.
5. Avoid depleting savings.
To learn more about becoming and remaining financially healthy, order the book “Money Matters Made Simple: A Woman’s Guide to Financial Health and Wealth” which can be acquired at www.AnneSchwab.net. To receive a 20% introductory discount, available only thru Feb. 28, 2015, use the contact form on the website and reference RER215.