Some of our emergencies, we can cash flow. Mini emergencies ($400 and under) we can pretty much cash flow, meaning we don’t have to tap the savings account. We can use our paycheck to handle it. The less debt a person have, the more they can cash flow.

So try your best to keep your debts as low as possible.

That’s just my opinion, Experts may say keep 6 months of expenses in your savings. Whatever!

I say keeps your debts low, therefore you have more to cash flow your emergencies.

Money magazine says a true (major) emergency happens to us once every ten years. I believe that.

If you have big emergencies every week, month, or year. It maybe your income or just bad budgeting causing your emergencies seem to bigger than they are.

Let’s say 2 people get a $150 speeding ticket. One makes enough in a 2 week pay period to cash flow (pay) the ticket. The other have to skip a bill or borrow the money.

The next pay period everything is gravy. The first person goes on with their life.

The second person now owes the credit card company or owe double on the bill they had to skip to pay for the speeding ticket. So next month he is in the hole and behind. This can linger for several months.

So 9 times out of 10, This person has an income/budget problem. It was not the speeding ticket that got him in trouble it was lack of budgeting or income.

The speeding ticket just was the symptom of the problem.

Now he is the kicker, most people do not see it that way. They would blame it on the ticket, on the police, on the car, on whatever destination they were rushing to.

Instead of on their lack of financial stability.

Trust me, I know this because I use to be one of those people. I got my act together and starting being wise with money.