Step 1 - Start a Rainy-Day Fund

Stop all investing.

This is only Temporary.  The goal is to pay off the debt as fast as possible, but this is hard to do while also investing. 

Start a Rainy-Day Fund

The first step to becoming truly wealthy is to save for a rainy day. 

Start Small and build a cushion to help avoid that overdraft fee or fix a flat.  This may even save the day when the starter goes out in the car.  Having $1000 in the bank could get that car towed and have the starter replaced.  Problem solved! 

Now imagine having $10,000 in the bank.  What kind of emergency could this take care of? The idea is to save a $1000 as a cushion where a flat tire or some small emergency doesn't derail us and start the whole process over again. 

Broken Glasses - $200…… No Problem

Furnace quits heating…. Its 2AM…. New Years Day…… $500 …… Ouch. But at least the heat is back on!

(Ours was the day before Christmas and set us back $500)

Water is running out the front door of the neighbor's house at 11PM, and the house is a duplex. 

Yes. This really happened on December 26th of 2022.

My point is, if we can put away $1000, those crazy events are just…… solved. 

Remember, Life is a process.  Start small and take one step at a time. 

Now, how to quickly Save a $1000. 

Probably the easiest way to do this for most of us to be just to cancel the cable TV or Internet or both.  I already have Internet on my phone.  We all can probably cancel the TV and cancel home Internet, and everybody can use their phone. 

Think about it, a $300 cable and Internet bill every month which is the average.  Take that cable bill out times 4 months that's over a $1000, and boom Step one done!

Here is the whole process.  It takes most of us two to three years to complete the first three steps, but it is well worth it.

Introduction - Do not get into Consumer Debt

Step 1 - Start a Rainy-Day Fund

Step 2 - Pay off all debts except the Mortgage.

Step 3 - Build the Real Rainy-Day Fund

Step 4 - Get those investments going.

Step 5 - Save for Education

Step 6 - Pay off the Mortgage Early

Step 7 - Become Wealthy and GIVE

Does saving $1000 sound like a tall order.  Here are some ideas. 

Cancel the internet - Hear me out….

Quit eating out.

Sell Something

Switch to a NVDO Cell Phone Provider

Get a second job\weekend job.

Take a NO SPENDING month.

             Eat what is around the house.

             Carpool to work

It's all about reducing the expenses so we can save and invest.

This is why we create a budget, or a plan for our money.  

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