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How do you prep financially for a major purchase - like a car, pool, trip-of-a-lifetime, etc? We are in the midst of a major kitchen and dining room remodel, which is our big purchase this year, so this is fresh on my mind. 

ADVANCE PLANNING IS KEY.

The only way to pay for ANYTHING is in cash. Utilizing a loan, payment plan, or credit card is digging yourself into a hole you will have to crawl out of later, with interest. The only way to pay cash for a major expense is to plan WELL in advance.

HERE IS HOW WE PAID FOR OUR REMODEL IN CASH:
1. DETERMINE THE TOTAL COST OF YOUR PURCHASE
- For us, that meant getting approximate quotes on the various aspects of the remodel well in advance. If you're buying a car, determine the average price of the car you want. Be warned though, the process of looking before you buy can get tempting. Don't jump the g...

_{This post contains affiliate links. If you make a purchase, I will be compensated at no cost to you. For my full disclosure, click here.}

I talk a lot about creating financial security through minimizing debt, creating significant savings as a financial buffer, etc. Another layer to the idea of financial security is creating multiple income streams. 

ONE OF THE WORST BLOWS TO YOUR FINANCIAL STATUS COULD COME IN THE FORM OF JOB LOSS.

One way to minimize the magnitude of this type of event is to develop multiple streams of income. This is something that may take several years to put into place. Creating a plan to develop this type of financial picture may be something that you start now, with the realization that it may not come to fruition immediately. 
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The higher percentage of your overall income that comes from additional sources, aside from your primary job, the less likely any single event can substantially reduce your income. 


HERE ARE A FEW SUGGESTIONS:
1. DIVIDEND INCOME FROM INVEST...

One of the things that this pandemic has shown us with certainty is that nothing is certain. People have lost jobs, businesses, commissions, etc with little to no notice. You may have not been financially prepared this time around, but you can use this as a learning experience and motivation to be better prepared in the future. 

An emergency fund is the key to financial security in an uncertain world.

This is one of those paramount "must haves" to protect you and your family. Determining how much you need and where to put it is fairly simple. The hard part is accumulating the money, and then having the self discipline not to touch it unless there is a TRUE emergency.


LET'S TALK THROUGH IT...
1. HOW MUCH DO YOU NEED?
- Take a look at your budget and calculate your monthly expenses. This includes all bills and essentials like food and household items. I wouldn't include entertainment or shopping "extras" in this. Take this amount times 6 (some say 3, but I like the extra cushion). Let's say y...