Episode 400 on the BP podcast was fire!!! I would like to hear your thoughts on your businesses defense.
I have been blessed with a great job that provides my fuel/ capital for REI but I find myself always trying to save save save for the rainy day.
At some point you have to stop looking for rain and start embracing the sun.
How do you save for rainy days and how much per property? How do you allocate it? Savings accounts, money markets, credit cards, lines of credit?
Good question Kameron!
I would like to refer you to some good reads:
1. The Richest Man in Babylon by George S.Clason
2. The Wealthy Gardner by John Soforic
Personally, I have a budget that allocates category percentages.
For a "Rainy Day Fund", I believe referring to an emergency fund.
I calculated the emergency fund needs to be as follows: added my monthly average utilities from the last 3 months (have to start somewhere), mortgage, and car loan. Took that # then multiplied that by 6 (months needed). Took that number and rounded it up to the next $1,000. That was my goal to reach. Once we reached that goal, no more went into it. I then started to put the extra cash onto our car loan.
For the real estate savings account, I take 10% of every dollar (just like tithe/giving category) and put it in a separate savings account. No more than that until my car loan (only debt) is fully paid off. The only way I put more in is when I get paid a bonus from my job. I have enough for investing now because of this. I would add more to the car loan but there is a nice fee if paid off early. The cost exceeds interest paid so yes, I'm sticking it out until it expires.
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