Page 220 - digitalliteracy

10.1 Getting Your Personal Finances in Order

Strategies for Success: Tips for Saving (Continued)

7. Take a long, hard look at your cable, Internet, and phone bills. There is no denying that
some of these services are essential. You need reliable Internet service to complete your
course work. Yet how much time do you really spend watching cable, especially now that
you’re a busy student? Could you stream some of your favorite shows online instead?
Analyze your usage and consider making some cuts. You may not even miss much of it
once it’s gone! Here are some creative solutions for cutting some of your cable expenses:
http://time.com/2897949/5-ways-to-cut-cable-but-keep-all-your-shows.
8. Barter! If you need some work done on your house or a car repair, ask friends who have
the knowledge to help you and in turn, provide some type of reciprocity such as pet-
sitting while they are on vacation. This saves money and creates a larger networking
web of friends.
Reflection Questions

1. How does making small sacrifices today benefit your future?
2. What small changes can you make in your daily life to meet your financial goals?

Setting Up an Emergency Savings Account

What happens to you if you lose your job and it takes months to find another? Losing a job is
not something anyone wants to think about, but you will likely work many jobs during your
career. Consider what would happen if you got hurt and were unable to work for several
months. Your health insurance may not cover all of your medical expenses, and who is going
to pay your rent, utilities, and groceries? You can protect yourself from financial catastrophes
if you prepare for the unexpected. Almost all of life’s calamities are, by definition, unexpected.

This means that one of your top financial priorities, and very first SMART goal, should be to
create an emergency savings account that contains at least enough money to cover 6 months
of your expenses. If your employment position is particularly risky or your line of work is
such that there is a greater supply of people who can do your job than there is demand, you
should have money saved for more than 6 months. You do not have to come up with this
amount overnight, but you should make steady progress to build up that fund as quickly as
you can. You read that Elena Maria contributed money to her emergency savings account
because it was one of her financial goals.

204
© 2016 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution.

sol82612_10_m10_195-210.indd 204 6/29/16 5:20 PM