Debt Reduction & Emergency Savings Is Key Now

The economy is what it is. Many Americans (and people all across the globe) are watchful to see when the economy will turn more positive. More and more we see countries all across the world are now boosting stimulus packages into markets to try to jump-start recovery. CNN is calling it the “Money Meltdown,” but we all know middle class families have been feeling it a long time.

What should your focus be right now for your family and recovery? We think there are two (2) key areas that should retain your focus now:

1. Debt Reduction. This starts with high-interest credit card debt and any other credit card debt. Debt is your enemy now. Do all that you can to systematically pay off or down debt. Focus on the interest you are paying on any debt. Minimum payments on lower debt – MORE than minimum payments on credit card debt with high-interest. You should do everything you can to get companies that you do business with to reduce or eliminate interest. Some credit card companies really will reduce or eliminate interest. The key here is to stop using credit cards. Remember: We don’t believe in chasing a credit score, but we also don’t believe in doing things that would naturally harm your credit either.

2. Emergency Savings. In the old days, experts would recommend that you build 3 to 6 months of emergency savings. We no longer recommend building this kind of emergency fund. That’s because of the time it might take you to replace your income in 2009. We are now recommending that you have 15 to 18 months of expenses in your emergency savings fund or start building to that point thru automatic savings (either thru your paycheck or automatic withdrawals from your checking account). Savings of this kind could SAVE YOUR FAMILY.

Your focus in these two (2) areas may actually save your family in the next 2 to 3 years. Isn’t that worth doing?

If you get a refund from Uncle Sam, put it in savings. Don’t spend it. Cash is king in this environment, and you can build a nice size emergency fund starting with a tax return or any unexpected money.

If you’ve been following this blog and our main blog (, you know that we talk about specific strategies to help you build wealth. A lot of people on the internet talk about magic solutions and instant money. We don’t do this because we know that real wealth-building happens by using strategies that require patience and old fashion results-driven family budget, automatic savings and staying “on course” once you’ve set your own plan.

Thank you for reading our blog. Please pass it on to friends by telling them about this site or It’s time to take our country back for our families.

Loyd Ford


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