Please note: These insights are intended for people going through Financial Peace University and are not a substitution or a recap of the coursework or presentation.
Super Savings is the first lesson in Financial Peace University. The main idea is that you must begin saving and the first step in ‘Baby Steps’ is to put $1000 in the bank. This becomes your ‘starter emergancy fund’ – so when things go wrong during the first few steps of FPU, you have an emergency fund to fall back on.
A few insights from experience:
- Getting Started, I highly suggest not only sharing what you learn and your goals with your spouse, but also any adult who relies on your support, i.e. adult children living at home. Anyone impacted by what you are about to do needs to be on your team or at least knowing what you are trying to do. First time around I did not include one of my adult family members – including meant something as simple as sharing what I’d learned and letting them know what I’d be doing different based on that lesson – and it slowed down my progress. Once I included them, things really started to move.
- Getting that first $1000 in the bank can be a longer process – things can happen even when you are trying to get that first $1000 but don’t give up! Just replenish and move forward. Ebay and Craigslist are great avenues to sell things to create the emergancy fund!
- Car problems always come up as ’emergencies’ but even these can be predicted and planned for. Car problems are the worst emergencies because they can often impact your ability to earn. But you can prepare. Look up your car on the internet and find out what the expected yearly maintenance is. Take your car to a mechanic and have them look over it produce a price list of what needs done – even if they ‘upsell you’ it’s a good itemized list of what CAN go wrong, then start saving for these things. Then you will have enough over the course of the year to cover your ‘unexpected’ car expenses – because they are now ‘expected’.
- Want to get that first $1000 in the emergency fund faster? Look for things you’d normally buy – being GIVEN away on Craigslist under the “Free” category. Also check for freecycling groups in your area. I got a $100 down douvet, a $50 Nintendo Game cube, a $200 computer, two TV’s, and so much more. Getting these things for free means you can put that money you’d normally spend in your ’emergency fund’.
Next Up: Insights on Relating with Money