Things Happen like COVID-19

Hope you had a fun New Year’s Eve and New Years Day. I am excited that it is 2021 and all the new opportunities we have this year. It would be hard for 2021 not to be way better than 2020. As many people know a lot of things can happen to a family in a short period of time.

Last year we saw COVID-19 mess up peoples lives in so many ways. For instance, some businesses had to shut down and some never reopened. Which caused a lot of people to lose their jobs and probably their only source of income to pay their bills. If they didn’t have an Emergency Fund then they are probably behind on their bills.

Some people that got COVID-19 had to be hospitalized and I am sure that ran them up some big hospital bills. I know my four hours in a hospital was expensive for us. Until the COVID-19 Vaccine is available to everyone I am sure more people will be hit with large hospital bills in 2021.

I don’t want to scare people about COVID-19 because I am talking about it. I am not a Medical Doctor or giving any Medical Advice to you. But it is a big Thing that is in the news and our world last year and will be this year probably. Seems like a lot of people have different views on it. The ones that are really afraid of getting it probably needs to find a way to never leave their house or have anyone ever over. We don’t live that way and most of our friends don’t live that way.

Some do and we just don’t see them. Such a small percentage of people live this way. I love the guys I golf with; they shared a bottle of Brandy the other day and shake hands. They are older than I am and have seen a lot of things over the years that was supposed to be dangerous to their lives. They choose to enjoy each day they are above ground. I am in that boat also. I have out lived my friends and cousins so far and not going to quit living due to COVID-19. I say leave Businesses open and let people choose to go shop them or not.

We just think it is funny how many cars are on the road. Darlene works in a Grocery store and they are busy with customers. We go to other retail shops and there parking lots are jammed full. Yet some people act like don’t get by me when you are shopping. I say they should just lock themselves up in their house and do home delivery then. They should just never live the house. They made the choice to go to the store, I didn’t for them.

Many people do not have enough money in their bank accounts to pay for a $1,000 car repair bill. I have worked with and talked with so many people that had less than $100 in their checking and savings account. Many had no retirement savings either. I have heard that one out of four people have no emergency savings fund.

We believe in having an Emergency fund for our family. We teach our boys to have at least six months of their total expenses in a savings account. We like to use a Brokerage Account for our Emergency Funds and we invest it in Stocks, Mutual Funds and EFTs. We know if we have to liquidate some funds to pay off an unexpected bill, we could with in about seven days at the most.

Remember this show is for entertainment only and you should seek advice from your Financial team if you have any questions on Investing. See my Disclaimer on MillsWay.com. I want to help you prepare for an unexpected bill so you don’t go into debt paying on a bill. I want everyone to live Debt Free and reach their Financial Freedom goals.

So, if our monthly expenses average about $3,600 per month then we need to have saved $21,600 in our Emergency Fund.

If we know we have some big expenses coming up in the next year or two we will build up our Emergency Fund account to cover those expenses also. For example, if we need to buy a used car next year and we feel it will cost us around $10,000. Then we will need to build up our Emergency Fund account to $31,600.

Here are some examples of Things that came up for our family in 2020 that thank goodness we had an Emergency Fund to come up with the money we needed for them. Some of the Things was our choice and some were out of our control.  Things that can come up and if you don’t have the money saved for them then you could go into Debt. Last year we had some of the following things come up that dug into our Emergency Savings;

  • My Mom died and we had to pay for half the funeral expenses.
  • We built a Shed for our folks in our backyard. Their health is not the best and we hope they sell their house and live with us.
  • Our Disney Cruise to Alaska got canceled and we lost some money on it.
  • Our Sister Audrey passed away and we traveled back for the funeral and to help out.
  • Logan’s car had some major repairs to get it to start. We wanted to sell it but had to fix it first.
  • Myself had Kidney Stone issues and had to go to the ER. That bill was a big one. Also had our regular Doctor bills for it and pharmacy bills.
  • Darlene had a front tooth broken and had to have an implant done. That was over $4,000.
  • Logan didn’t go into the Navy so we bought him a Computer for Programming School and then in 2021 we are fronting him the money for College. He is currently looking for a job to help pay for the college. Total of both over $15,000
  • Seth had to go see the Cardiologist and Regular Doctor which was over $500.
  • Darlene has problems with her Veins in her legs so had to go see a specialist to get them fixed. More bills from the Doctor will be in 2021.
  • Our Car needed a bunch of work done which added up to $2,889. The Brakes will need to be replaced on it in 2021.

These above things are just some examples that hit us in 2020 and I am sure that I probably missed some. None of them were in our budget for 2020. Thank goodness for our Emergency Fund and living below our Incomes. Just think back in the last two years the large expenses that came up for you that wasn’t planned on.

Years ago, I had a married couple that didn’t have enough money for a car battery that died. They had maxed out their credit cards and couldn’t get any new credit cards because their credit score was in the toilet. They were going around to their friends asking for $100 or whatever they could loan them towards a new battery. They needed the car to get to their jobs thirty miles away. Their money problems went much deeper for sure than not having an Emergency Fund.

After your Mind is set you need to create a Budget to get your fund set and then attack your debt. It would be hard to ever build up an Emergency Fund if you aren’t spending less than you make.

This is hard for some people to do. For instance, the couple with the Car Battery had a lifestyle that they felt was more important than having Financial Freedom. They choice to continue to Smoke Cigarettes, Drink at Bars, Bowl in leagues, go to Casinos and more. They didn’t have their Mind set to do something different. They didn’t want to get help from a Financial Coach. They just wanted to get a battery and make it till next paycheck.

That is why an Emergency Fund is so important for the unknown events. Do you have an Emergency Fund? If so, is it enough?

Teaching your kids about having an Emergency Savings Account is important we feel. Like Proverbs 22:6 NIV said “Train up a child in a way he should go; and when he is old, he will not depart from it.”

What is your situation? Do you have an Emergency Fund for when things happen? Would you have enough money available if you got hit with a bill of $10,000? If not, how would you pay the bill off? Would you have to make payments or put it on your Credit Card at a High Interest rate?  What is most important is the one that works best for your situation. We just don’t like to owe money to anyone. That is what we teach our boys also.

We hope everyone has a safe, fun and happy 2021 from our family – The Mills Family.

Here are some positive quotes I like;

“Get your Money to Work for You… As hard as You Work for it.” By Napoleon Hill

“1. Make Money. 2. Use the Money to Make More Money. 3. Repeat the Process.” By Warren Buffett

“There is no way to happiness; happiness is the Path.” By Buddha

“Change Your Thoughts – Change Your Life” by Wayne W. Dyer

Let me know your thoughts about this blog and let me know of others you would like me to do in the future. I feel we can all learn from each other. That is why I am in the helping people retire early, enjoy life more and be more successful. Also, please see my Disclaimer page.

Don’t give up on your dreams; don’t let others talk you out of your dreams. Make your dreams happen. Make it happen today.

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