Personal Finance 2012: Guest Post from Ash of SterlingEffort.com

January 31, 2012

banking, finance

 

We’ve been busy lately at Cashzilla Towers! We’ve been talking to some of the best finance writers online, and this week we’re delighted to host their ideas and opinions about how to manage our personal finances and private banking in 2012. Today’s guest writer is Ash from Sterling Effort.

Image via Sterling Effort

Save, save, save. Building a financial safety net is important at the best of times but right now it’s absolutely essential. The doomsayers would have us believe the sky will fall in 2012, so it’s prudent to have a roof above your head just in case they’re right!
Some suggest you should save enough cash to cover three months worth of living expenses, others say six months or longer. The important questions to ask yourself are “What would happen if I lost my job tomorrow?” and “Am I confident that I could find a new job by the time my cash runs out?”
No one can tell you exactly how much you should be saving, but we should all spend some time thinking about the answers to these questions, especially if we have other people depending on us for security.

This is basic money management, but for a nation of debtors, summoning up the determination to save can be difficult. After four years of these horrible economic conditions, I look around and I still see an army of people who would be financially destroyed should they be unfortunate enough to lose their only source of income. Don’t let that happen to you. Do what it takes to build your cash safety buffer. Spend less and try to think about ways to make some extra money on the side.

You don’t need to have a huge income. You just need to make some sacrifices and remain committed to ensuring your financial security. It doesn’t sound too sexy but it’s truly liberating. Bad times may be coming and being free to not worry about that is a wonderful thing.

Sterling Effort was created to stuff some financial knowledge into those of us who grew up without being taught how money really works; how to make it, save it and grow it. This site breaks down the task of understanding personal finance and private banking into simple and easy to swallow steps, giving you clear and concise information and hopefully providing some entertainment along the way.

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