Revolution: Need Vs Want List | Emergency Fund & Life Happens Fund

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The Revolution Talk Show: Michelle Singletary

Michelle Singletary is an author, columnist, and wife and mother of three. She said her grandmother taught her to live below her means, and she’s spent her life helping others manage their money.

Now she has written several books and is a Washington Post columnist. Her frugal ways even helped her choose a fiscally responsible husband, and she’s committed to helping her kids get through college debt-free.

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Revolution TV: Need Vs Want List

Learn how to decide if you can afford to make a major purchase with simple questions about your finances.

She recommends sacrificing and scrimping to manage your money. That way, you’ll spend only on things you really value.

The Revolution: Major Purchase Need Vs Want List

Michelle Singletary shared questions you should ask before making a major purchase.

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Emergency Fund

Do you have an Emergency Fund? Michelle recommends that you have three months of expenses saved for an emergency.

“Life Happens” Fund

Do you have a Life Happens Fund? This is money saved in case your car breaks down you have an unexpected expense.

Credit Card/Student Loan Debt

Are you still struggling to pay off what you owe to Credit Card Companies or Student Loan Lenders?

Retirement Savings

Are you putting away money for your retirement?

College Fund

Are you saving money for your children’s college fund?

Michelle Singletary said if you can’t answer these questions positively, then you don’t get to go ahead with your major purchase.

Revolution TV: Can I Afford A Vacation?

Audience member Lisa is a single mom who wants to take her 18-year-old son on vacation. But Michelle said Lisa knows she can’t afford to take this trip.

Michelle looked at Lisa’s monthly expenses, including mortgage, utilities, car payments & expenses, groceries, and other monthly bills. Lisa is making just the minimum payments on her credit cards.

Michelle Singletary asked a tearful Lisa the questions on her Need Vs Want List and determined that she’s a long way from being able to afford a vacation. “Your son needs your presence, not your presents,” Michelle said.

Michelle suggested that young adults work to pay for their own cell phone or other fun stuff.

The Revolution: Emergency Fund

Michelle Singletary challenged everyone to add up their monthly expenses and start building an emergency fund, comprised of three months of expenses. She suggested looking for ways to cut expenses and save more so you can be prepared for the unexpected.

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