With the year about to end and another one about to begin it's high time to think about our financial status.
I have always said that a retirement fund is a must because we don't want to be dependent on others when we are old and gray. But I'm fessing up. I haven't been very good with regards to this. So for the coming year I will strive harder to contribute to our retirement fund.
And we should really have an emergency fund. We'll never know what the future holds. Some say that an emergency fund should be equal to your monthly expenses X 3. But this is a modest amount. Just think how many months is comfortable to settle with and multiply that with your monthly expense. Personally, I'm targeting 6 months. So if your emergency fund is in a bank (or in your cash box) be sure not to touch or spend it. It should also be accessible for it is indeed an emergency fund!
I have been pondering on jumping into the investment bandwagon but I know that it is not wise to invest in something if I don't understand it. So I'm still reading up on that.
Our financial accomplishment for this year is that we are debt free. I don't use credit cards. Hubs has one which he uses for when he's travelling. But as per our agreement, everything that he pays thru swiping must be paid in cash immediately. It is better to pay debts as soon as possible rather than letting the money stay in the savings account.