Life is full of unexpected events. Are you ready for them?
* Your car breaks down and requires a major repair.
* You fall and break your arm, and are unable to provide child care for four to six weeks.
* Your roof springs a leak and your homeowners insurance has a $1,000 deductible.
* Your mother becomes ill, and you leave town to stay with her until she recovers.
* The largest employer in your town shuts down, and three families tell you they are leaving.
If you think about it, unexpected events are such a fact of life that we really should call them expected events.
Since you are almost guaranteed to encounter a major financial disruption at some time in the next few years, you should plan ahead by setting aside at least three months of living expenses in an emergency fund.
Deposit this money in a money market fund or bank account where it can be easily accessed and has little or no risk of losing its value.
Here’s what three family child care providers said about emergency funds:
This is the beginning of an article I’ve posted on childcareinfo.com. In the rest of the article I describe a three step process for setting one up and following through by contributing to it regularly.
Childcareinfo.com is a community for family child care providers and parents that offers a wide variety of resources including recipes, a blog, and a newsletter. It serves as a clearinghouse for many online resources (children’s activities, training opportunities, equipment, and more).
Childcareinfo.com was created by Minute Menu to offer free assistance that will help the family child care community grow.
Tom Copeland – www.tomcopelandblog.com
Image credit: www.genevieveng.com
For more information, see my book Family Child Care Money Management and Retirement Guide.