The first part of this series can be found here - https://abstractions.avgrump.com/2019/03/personal-finance-basics-part-1.html
In this entry, I'm going to cover what to do after you get your debts knocked out. First things first, DON'T RACK UP MORE DEBT AGAIN!!! You worked so hard to get things paid off, don't dig yourself back into a hole again. If you have credit cards, keep them to something you can pay off every month, if you use them at all.
After that's covered, you need to start protecting yourself from life's little mishaps. A hole in the tire, broken water heater, whatever may come up, you need to be prepared to take care of it. So you need to start a savings account. The interest is crappy, but this is just a vehicle for you to keep some spare money, not live like a Wall Street Tycoon. The object of this is to give you financial space. A good idea is to cover rent or your mortgage payment at least with this fund. A good idea might be $3000 as a goal for this. That way you can handle most normal speed bumps.
After you've got some cushion, it's time to aim higher. Now you aim for 3 months salary. Basically, this covers you in case you lose your job, while you're finding a new one. Be your own unemployment insurance. The feeling that you get when you can cover things should anything go wrong is wonderful. The idea is to become independent, and not reactive to the things around you. Be proactive, and that way you can just handle things as they come without getting stressed and without being worried. Just that bit of freedom is priceless. More to come in the next segment.
What goes on in the head of an aging AV professional? This blog will attempt to find out....
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