Date Night Club (June 2020): Developing a Plan B

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With the state of the world as it is right now, I think we’ve all seen how important it is to have a financial plan B (aka an emergency fund). And yet, so many of us don’t! According to the Federal Reserve, 40% of Americans couldn’t cover a $400 emergency expense without selling something or going into debt. This month’s Date Night Club is all about getting your Plan B in place, just in case you need it.Here's why this month's topic is so important ...

Take a Bite:

What does financial security look like to you? In other words, what would you need to have in place to feel financially secure?

DATE NIGHT MATERIALS LIST:

  • A copy of last month’s budget

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15 MINUTE SNACK:
let’s Play worst case scenario

Your mission should you choose to accept it is to tackle these worst case scenarios.

I know it might seem depressing but staring the worst case scenario square in the face is one of the best ways to see how your finances fair against the rough waves life can bring. You’ll find the strengths and the holes you need to patch up. Work through these methodically. Ask yourself, “What would we do first? Then, what would we do next?” until you reach a solution. The more detailed you get in your plan the better. End up resorting to a credit card to off load some of the financial weight? Include a plan to pay it back.

  1. Your fridge goes out in the middle of the summer right after you went to the grocery store. You lose $100 worth of groceries and need to get another fridge stat. Let’s assume the cost of a new fridge is $1,000.

  2. One of you has an unexpected health event. You incur $20,000 worth of medical bills (before health insurance) and the injured partner needs to go on short-term disability for two months as he/she recovers. Let’s assume he/she receives 60% pay from his/her employer during this time.

  3. One of you unexpectedly loses your job.

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If you like, you can take this month's topic deeper ...

MAKE IT A MEAL: APPLY WHAT YOU'VE LEARNED TO YOUR CURRENT BUDGET

Need to get that emergency fund built up quickly? Use this week's blog post for ideas to stash that cash fast!

Ready to up your long-term emergency fund game (aka that 3-6 months of expenses)? Check out this Date Night to do the math on how much you need and then make a long-range plan to get there.

MONTHLY BUDGET CHECK-IN

Take a moment to look back at last month's budget together.

  • Did you stay on track?

  • If you got off track, what 1-2 steps can you each take to get back on track again?

  • Did any surprises come up - positive or negative?

  • Take a look over the expenses, did the way you used your money align with your values?

  • What changes will you make for next month?