3 Key Financial Strategies From 4 Pillars

Unexpected situations can occur in life that derail the best of goals, plans, and intentions. Often these unexpected situations have an impact on our finances, and this creates the risk of falling behind on home, vehicle, and other types of payments and bills.

There are three ways to help to minimize the impact of negative financial events in life. The debt consultants at 4 Pillars recommend getting started in building a strategy that provides protection if and when these issues occur.

Start an Emergency Fund

Different professionals recommend different levels of emergency funds. Ideally, the goal is to have at least three months of expenses saved in the bank to help you through any possible issues.

However, as the staff at 4 Pillars recommends, getting started by saving any amount of money on a weekly basis can quickly add up. Have a savings account that is not linked to other accounts to avoid dipping into the emergency fund.

Limit the Use of Credit Cards

Credit card debt is one of the biggest problems facing most individuals working with 4 Pillars debt consultants. The use of credit should be limited to the ability to pay off the balance on the card on each billing cycle.

Plan for Large Purchases

Planning in advance for large purchases is important. This allows a wise consumer to shop around for the best price, to consider the best financing option, and to have a larger deposit amount available to reduce the amount of a loan, mortgage, or payment.