There is a saying that misfortunes never come singly
Things usually happen according to the same scenario: a problem creates stress which in turn leads to mistakes that increase stress and cause greater blunders. This vicious circle is known to many of us but few realize that the root cause of it is stress.
It’s common knowledge that insurance is the most widely-used financial product on the market. In this country practically anything can be insured – from a spaceship to a body part. However, the world we live in is far from perfect and there is a gap in this seemingly flawless field — you cannot insure a break of income. There is no insurance covering the situation when you no longer have anything to contribute to the family budget.
What to do in such situation? The answer is simple: to have an Emergency Fund (EF). By putting aside 10% of your annual income you can create EF within 10 or more years. That is provided good luck is on your side. Unfortunately, statistics is far from consoling: each American family is faced with the 50% loss of income every four years. Which means that lots of families live under constant stress. At first, stress is caused by the anticipation of a possible problem and then by the fear that the EF will not be sufficient enough to provide the stability of the family budget. When loss of income does happen, stress becomes full-fledged and pushes people to take hasty, ill-considered steps. In their frustration, they overload their credit cards which inevitably brings down their credit score. If you decide to use your home equity, it will postpone the mortgage pay-off for years. Using funds from your investment projects can result in great financial losses or even their complete shutdown. Similar losses await us when we resort to utilizing pension funds and programs. Such emergency measures can be destructive to the above family projects in the future. At the same time, the necessity to mend the family budget without any delays forces us to take up all kinds of temporary jobs that do not require high qualifications. The sad truth is that such jobs often turn from temporary to permanent putting an end to our professional career. All these steps are taken as a result of erroneous choices made under the pressure of stress. That’s how the negative vicious circle is created leading the family toward irreversible financial consequences.
On top of all that, it’s hardly a secret that many families who fail to resolve their financial problems end up breaking up and filing for a divorce.
So, what’s the way out? Since we do not have full control over our income, it’s worthwhile to experiment with the Emergency Fund. We already know how to create EF, but now we have to find a way of doing it in the shortest possible time, within 6-8 months. If we manage to create EF within months, not years, we can live a stress-free life and be certain that our family will easily overcome all kinds of financial difficulties in the future.
Whether we want it or not, but the only tool capable of resolving this financial problem is credit cards. It takes 365 days to save $5K while it only takes 10 minutes to open a credit card with $10K limit. Only credit cards provide the possibility of having a $100K credit line within 10-12 months with the participation of both spouses. It is this credit line that will become your EF allowing you to resort to it any time and without any limitations. Stress will no longer be an issue. There is only one condition: credit score of each of the spouses should be high enough to allow cards with $10K limit or higher. Clearly, not everyone can meet these requirements. However, the good news is that there is a technology which enables every person to raise his or her credit score within a few months. That’s all that is needed to start creating your Emergency Fund.
Always happy to assist you in resolving your financial problems.
Please call me for more information: 847-520-7030.