When I was single I always had a savings for this and a savings for that, but I didn't really think long term because my expenses were limited. I didn't have a car payment b/c my car was old. I'm talking cassette player old. I never minded because while my friends were complaining about car payments, I was enjoying my old clunker and not worrying about payment deadlines. I had a cell phone bill, car insurance, minimal rent to my mom [yes, I lived at home], and clothing/food expenses. It wasn't until I was married, a home owner and a parent that financial planning became more important.
Now that we own a home there are repairs that need to be done, fairly frequently. On top of that there's the mortgage and home owner's insurance. My husband and I found that the only way we could have peace of mind was to save up an emergency fund. We took a particular course on financial peace, and the FIRST step in this program was an emergency fund. Most financial planners will suggest you have AT LEAST 3 months worth of expenses saved up, but they encourage you to have more. Having an emergency fund gives you a sense of security and peace. Instead of thinking the world is coming to an end when you need a roof that costs X dollars, you can respond with "thankfully I have enough to cover it in my emergency fund, so I can still put food on the table this month." It gives you a completely different attitude when "emergencies" happen, and they will happen.
In my opinion emergency funds should be for just that: emergencies, but it's also good to have money saved up for foreseeable expenses like holiday shopping or birthdays or back to school shopping. The holidays are always a whirl for me, so it's easy to get caught up in the hustle and bustle of the holiday season and lose sight of the goals we've set, especially when it comes to helping us achieve financial peace of mind, but this year Capital One 360 is decking the halls with deals you can bank on [see chart below], including new account bonuses, referral bonuses and closing cost credits.
Once the Thanksgiving celebrations are done, be sure to add Capital One 360's Black Friday Sale to your shopping list.
Visit http://clvr.li/cap1bfs to give yourself the lasting gift of financial peace of mind by taking advantage of Capital One 360's deals on banking, brokerage and mortgage products. In addition to taking advantage of deals on banking, brokerage and mortgage products yourself, you can give your friends and family the gift of financial peace of mind by encouraging them to take advantage of the deals and refer them to the sale. If they sign up, you may be eligible for a $40 referral bonus. I've done this before and it's great! You get a gift just for sharing a great product/service with someone else you know. You could put it toward your emergency fund, or spend it on a cute pair of shoes ;-).