Do you have emergency money available?

Without any emergency money what will you do in case of unexpected events?

At the end of the year, they realize that they have spent more than their revenue.

Their debts increase and they do not put any savings aside. Let alone emergency money!

What if you are sick?

Let's say you are sick and unable to work for a long period.
Without insurance, you have to live on your savings.

If you do not have any savings, what options are you left with?
If you still have enough credit to borrow, getting a loan is an option.
If you do not have any credit, you are on welfare, that is not a very ideal situation.

Borrow money?

You have borrowing possibility; this may cost you a lot in the end and for sure increase your indebtedness.

You already spend much over your revenue, you will have to reduce your expenses and live more up to your revenue.

If you have a house that has a certain net value, you may have to contract a second mortgage to guaranty a loan.

Time for your personal finances.

Sometimes bad things are linked to good things. While you are unable to work, you may be able to work on your personal finances and think about your budget.
An unexpected event may lead you to start making a budget and follow it closely on a monthly basis.

Get the printable budget form on this site, and fill it up, estimate your revenue, this is the easy part.
List your expenses, you will see what is left for savings.
If you did not have any emergency money to deal with the unexpected event, you will probably find that your expenses are higher than your revenue.

Cut expenses.

Check the expense column closely and get rid of all unnecessary expenses till you can post some savings. A good rule of thumb is to have at least three times your fixed monthly expenses as emergency money .

Web budget-expenses-savings.com