Has something bad ever happened and you just didn’t have the money you needed? Maybe your car broke down, your furnace crapped out, or your kid’s dental bill wasn’t 100% covered.
When we don’t have the money, we often borrow from friends & family, dip into our do-not-touch savings, or we lean on some form of high-interest credit.
That’s not the kind of stress we want for you. The entire reason Cashco exists is to provide relief today and hope for tomorrow. That means that we want to help you climb the credit score ladder out of chaos and into a place where you can find financial stability.
What does financial stability look like?
Financial stability really means that you have the capacity to absorb a financial shock, while still having the room to pay for your everyday needs, wants, and savings.
There are 4 things we consider when asking ourselves “am I financially stable?”
- You have an emergency fund. Ideally, you’ll have saved up 3 months of your living expenses, but even saving $500-$1,000 can be a huge saving grace when you run into trouble. We recommend having this money SEPARATE from all your other accounts so that you don’t accidentally touch it.
- You’ve built a buffer. Many of us use our chequings account for our rent payments, grocery bills, utilities, car payments… you get the picture! Whatever account you’re using, it’s important to build a buffer of about $500. That means that money just sits in your account without being touched. Buffers help avoid Non-Sufficient Fund fees and relieve the stress of living paycheque to paycheque.
- You’ve gotten rid of “bad” debt. In his book, Wealthing like Rabbits, Robert Brown tells us all about bad debt and why we need to get rid of it. If you have any type of loan or credit with a high-interest rate, you need to sit down and figure out how you can pay it off as quickly as possible.
- You’re saving for YOU. We live and breathe by the 50/30/20 rule. We won’t go into detail here, but that “20” means you’re saving 20% of your take-home income. We cannot stress the importance enough of saving for your retirement.
Once you can put a checkmark next to all of these points, you can consider yourself financially stable! Until then, keep working away at your finances… you will get there.
Get your copy of Wealthing Like Rabbits
A great way to find financial stability is by reading Wealthing like Rabbits! We’ll give you a complimentary special edition when you sign up to be a member of The Village!