Here’s Why I Don’t Live On The Edge

Yeah, Financial Planners sometimes make financial mistakes, too.  Just because you think ahead doesn’t mean that you won’t goof something up.

Case in point: it’s last night, I’m running errands, and I’m tired.  I go to the bank’s ATM to deposit my paycheck (yay!), and I forget my PIN.  I enter the wrong code the magic number of times and hey, presto!  No debit card.  Here’s where our story could have a couple different endings:

  1. I live paycheck to paycheck.  I have no savings.  Rent, loan, and an insurance payments happen in the next five days, and I can’t get my paycheck deposited because the bank’s closed.  I also have to buy groceries and I have no money because I always use my debit card for everything.  Freak out.
  2. I don’t live paycheck to paycheck.  I have some extra money in my checking account, just in case.  Rent, loan, and insurance payments are due in the next five days, and I wont be able to deposit my paycheck for about five days.  I need to buy groceries, but I have a little stash of cash at home, just in case.  I do not freak out.

I like my low drama lifestyle.  Here’s the moral of today’s story:  having ready cash solves a lot of life’s little problems.  Take a few moments today to take stock of where you could get some money quickly if your main method of paying for things disappeared.  And, if that second method of paying for things went away, what would you do then?

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