The United States government shut down the other day. Regardless of your personal beliefs on the issue, one thing that we can all agree on is that the pay suspension for many Federal workers is causing many families to suffer. So many people the world over live from paycheck to paycheck; even a delay in the receipt of their income can be devastating.
The fear of financial insolvency has colored the choices I’ve made for decades. It’s one of the primary reasons that I favored low-wage, “disposable” jobs in industries such as fast food as a single mom. I selected those positions because I knew that if I lost one job that I would be able to secure another position within a matter of days.
It is much better to have financial security than it is to have a higher paycheck.
As I grew older and wiser I realized that job security wasn’t enough. It’s obviously not enough for the Federal workers currently suffering the political fallout from the current situation in Washington and it’s not enough for anyone with a family depending upon them. Things happen. A kid can become ill, forcing a parent to stay home and provide care, a car can break down making it impossible to go to work, a refrigerator can die, or the heat in your home can fail in the dead of winter. You can even become ill or injured, forcing you to take time off of work in order to heal.
This is why I began the practice of keeping a financial buffer.
My current buffer would provide three month’s of comfortable living in the event of an unforeseen disaster; five months in a pinch. Even with my determination to invest every penny I can I’ve still managed to continue increasing the amount of money I keep stashed in my emergency fund.
Everyone needs to keep a financial buffer. With our current political situation, this buffer would have allowed these families to continue providing for their families for the duration of the Government Shutdown with minimal disruption. It wouldn’t be fun, but it would be a helluva lot better than facing homelessness or food insecurity.
I don’t care how little money you make; if you don’t have a buffer of safety stashed away in a bank account or a lockbox at home you are taking a foolish, downright stupid chance with your financial security. Shit happens. When it does, your paycheck is usually the first thing you lose. Unless you want to live in a cave like Daniel Suelo you need to keep a stash of cash just to survive.
It’s not fair but that’s just how it is.
So suck it up Buttercup and face reality. It is not the world’s job to support you. Most people won’t even care if you lose your paycheck, they’ll just offer platitudes and go on with their day. It’s up to you to support yourself and your family; to do that you need to keep some cash on hand in the event that the unthinkable happens.
You can start out by saving your spare change. Instead of tossing your pennies on the ground, put those suckers in a jar at home. Roll them occasionally and stick them into a bank account you won’t touch, or convert them to cash and stash it in a lockbox at home or a safety deposit box at the bank. Put it somewhere you won’t be tempted to touch it when you stumble upon a sale of your favorite whatsit.
Instead of blowing money on a tattoo or getting your hair professionally done or a fancy manicure, take that money and stash it away. What’s more important to you? Is it more important to keep up with the Jones’ or is it more important to keep a roof over your head and food in your belly?
I don’t know about you but I prefer to eat any day.
You can splurge on the extras once you know you’ve gotten a buffer built up and will be safe in the event you go to work one day and discover your job has closed. It is much better to be safe than sorry when it comes to your finances.
Do something good today. Share this post on social media. You share cat photos all of the time; this post could be the wakeup call someone needs to prevent a financial disaster. Help your buddies help themselves for a change. Thanks for caring!
2 thoughts on “The Importance of a Financial Buffer”
Great article, and I totally agree with you. I worked as a freelancer for many years, and having a financial buffer saved me several times when work dried up or there was a major downturn in the economy. It’s not fun scrimping by on your emergency funds, but I was so thankful I had money set aside for difficult times.
Keep up the great work, Annie. I enjoy reading your blog.
I’m so glad that you had that buffer! Even when working a public job they are essential. You never know when you’re going to get fired, regardless of your position in this modern age.
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