Money for a TRUE emergency

It is very important that everyone has some money saved for those unexpected emergencies. It is a hard and fast rule that emergencies will occur. One thing to think about is the need to have a certain amount of your emergency fund in cash stashed at home or in your 72-hour kit. People who have lived through natural disasters have learned that when the power is out for weeks at a time, cash is a necessary requirement. Stores are often willing to sell their goods, but can't access your funds through a debit or credit card. You'll have to decide how much to keep in cash, but be sure and have smaller size bills since people may have difficulty making change.

We've learned to hide it in hard-to-get places so we aren't tempted to raid the stash to pay for a babysitter or to give our kids allowance. We want it to be there if there ever was a TRUE emergency.

Just something to think about -

Stock-up Prices To Watch For

One of the best ways to save money on your grocery bill is to track the prices of items in your area that you purchase or use on a regular basis.  I have been doing this since I got married.  Before that, my mom was tracking them and she shared her good deal prices with me initially.  When I see an item hit my stock-up price I purchase enough to get me through 6 months to a year. (Because I have my meal plan put together, I know just how much of these items I need for a year.)  I then wait to purchase that item again until it hits this low price.

Grocery prices vary so much with your location.  Those of you lucky enough to live in the Boise Area, I will share my current list here in a moment.  Those of you outside of the Boise area can create a list of your own using mine as a guide.  By shopping this way, we spend less than half of what the average American family spends on groceries and you need to remember that our family of 7 is much larger than the average family.  Saving money on your grocery bill is the fastest way to find extra savings that you can use to fill your emergency fund.

Stock-Up Prices to Watch For

Cream of chicken or mushroom soup             $ .50 (sometimes it goes to $ .33)

Tomato soup                                                   less than $ .50 (sometimes it goes to $ .33)

Olives                                                              $ .99 (sometimes it goes to $ .79)

Tuna                                                                $ .45 (sometimes it goes to $ .33)

Canned vegetables                                          $ .50 (sometimes it goes to $ .33)

Pineapple - 20 oz.                                            $ .79

Mandarin Oranges – 11oz.                              $ .45

Canned beans (kidney, navy, etc,)                  $ .50

Refried beans                                                  $ .50

Diced Green Chilies - 4 oz.                             $ .56

Diced tomatoes - 15 oz.                                  $ .50 (sometimes it goes to $ .33)

Tomato sauce -8 oz.                                        $ .25

Hunts Spaghetti Sauce                                    $.79

Pork chops, bone-in                                        $1.58/pound

Boneless, skinless chicken breast                    $1.78/pound (sometimes it goes to $1.49)

Pork spare ribs                                                 $ .99/pound

Pork roast                                                        $ .99/pound

Beef Roast                                                      $1.99/pound

Ham                                                                $ .99/pound

Extra lean hamburger                                      $1.99/pound

Sausage                                                           $1.99/pound

Cheese                                                             $2.00/pound

Cream Cheese -8oz.                                        $ .98

Flour                                                                $7.00/25 pounds

Sugar                                                               $11.00/25 pounds

Powdered Sugar                                             $ .50/pound

Brown Sugar                                                   $. 50/pound

Cold cereal                                                      $ .10/ounce

Chips                                                               $ .10/ounce

Crackers                                                          $ .13/ounce

Hamburger/Tuna/Chicken Helper                   $1.00/box

Pasta                                                                $ .75/pound

Macaroni and Cheese                                      $ .42/box

Peanut Butter                                                  $ .08/ounce

Kraft BBQ Sauce                                           $.79/bottle

Salad Dressings - 16 oz.                                  $1.00

Because these items store for quite some time, I never buy them until I see them for this price.  Learn to change your buying habits and stock up with 3-6 months' worth or more when you find these prices.

Emergency Fund

We learn from the Bible story of Joseph in Egypt that seven years of plenty are followed by seven years of famine.  My husband likes to remind me of this which is his way of saying, "During our times of prosperity we need to be thinking ahead and preparing for what may come."  The best way to prepare financially is to save a little each month in an "Emergency Fund."  Financial experts suggest having at least 3 months' of expenses set aside, but if you only have one income in your household or are working in a more risky area for job loss, you really need to try and set aside 6 months-1 year.

I know this seems like an impossible task.  But I know it is possible because we have done it and I am aware of other families who have done it as well.  The amount for each family is different.  You really need to determine what your bare minimum expenses would be for one month.  Notice that I didn't say to pay attention to what your income is each month.  If you can figure out a way to reduce your expenses, the amount you need in an emergency fund can be less.

For example, if you are living on $3,000 a month right now, you would need to save $18,000 to cover 6 months'  worth of expenses.  If you are able to find ways to cut back to only $2,500 a month, you would only need to save $15,000.  You would also have an additional $500 a month you could put toward your emergency fund instead of other purchases.

Great peace of mind comes as you watch that emergency fund grow.  Get creative in finding ways to save money.  Many of us make resolutions to do better with our finances in a new year.  Over the next few weeks, I will be posting some ideas that we have come up with that help us save money every month.  Hopefully, these ideas can help inspire you to keep at it and get that emergency fund filled up.