Create an emergency fund that consists of at least 6-9 months worth of living expenses. In this economy you may not know from one day to the next if you may be laid off. It takes my average client 6-9 months to obtain new employment if they lose their job. Most of my clients have minimal savings accounts, if any. By living paycheck to paycheck, you are one hot water heater, one leaky roof, and one broken bone away from bankruptcy. Imagine what would happen if all of these things happened within months of each other? Most of my clients either can’t or don’t properly budget for these events.
For more information on bankruptcy, please visit http://www.abankruptcyfirm.com/ or contact your Kansas City Bankruptcy Lawyer, Betsy Lynch at 816.434.6616.