The recent passage of Hurricane Beryl reminded me of just how unpredictable life can be. A major change at a moment’s notice can throw the most unexpected thing at you and sometimes even with best laid plans things go awry. Whether it is a an unexpected but needed car repair, an unplanned for medical bill or a hurricane. Life is full of surprises, and not all of them are pleasant. But do not despair if you put specific plans in place you can weather almost anything. In this post I thought I would share with you just a few things that you can do to help yourself weather the storm of unexpected expenses.

Why It’s Important: I know, you have heard this all before, but it is very important to reiterate here. This fund acts as a financial safety net, providing you with the means to handle sudden expenses without causing your budget to go out of wack.

How do you Build an emergency fund?

Start Small: Aim to build a nest egg of a minimum amount, when you reach that goal move the goal post and save more. For example, you could say you want to save $150,000 in the next six to nine months. When you reach that goal increase the savings amount up to let’s say $500,000 and as long as you are able keep moving the savings goal post.

I understand some people may say they have heard it all before, it’s a nice idea to save something but they have nothing to save. Have you ever said that? Do not worry is my advice to all who want to save but feel they can’t. Just start small. Every mickle still makes a muckle. Here’s a suggestion, suppose you commit to saving $500 per day, 5 days for the week, that’s $10,000 for the month and at the end of the year you have $120,000. This is just a suggestion you can do more or less, but the secret to achieving your goal, is to be committed to saving and to ensure that the amount you save is something you can afford to save. Here’s a tip to help you stick to your goal. Automate your saving. What do I mean by this? Set up an automatic transfer arrangement from your monthly salary to the instrument you want to save in. Most of our members already know how this works, because they have such an arrangement to save in their shares and other JTA Credit Union accounts.

When you automate your savings it makes it easy to stick to your plans.

If you look at your circumstances and you see that you really do not have any way to increase your savings from your existing salary why not try to increase your income by creating an additional income stream.

How to Do It:

• Freelancing: One thing I admire greatly about teachers is the fact that they are very talented. I believe that as a teacher you can use your talent to create an extra source of income. Spend a little time thinking about it make a list of things you can do, is it sewing, writing, drawing, playing a musical instrument or cooking. I am sure if you think about it you will see the talents that you have. Use those talents to start a business. My only word of caution is to make sure you pursue this second income stream outside of working hours that way you are not distracted from your main job of teaching. To get an idea of how you can create a second income source even as you maintain your full-time job, I invite you to listen to the Credit Union’s first episode of our podcast Series, The Teachers’ Oasis. In this conversation one teacher shares how she was able to earn extra income using her talents and skills. This podcast is available on our YouTube channel at https://www.youtube.com/watch?v=pQiwcD7fIbQ
• Part-Time Work: Another source of additional income is part-time employment. Can you find something that fits your schedule? If so, go for it, remember our aim is to build an emergency fund so whatever opportunities you find take the time to explore them and see how best to put them to use.

Why It’s Important: Let’s face it, sometimes expenses come up that we just don’t have any funds to cover. That is where credit comes in. A loan can be a very useful tool if you need immediate funds, but it’s crucial to use it responsibly to avoid it becoming a noose around your neck for years to come.

How to Do It:

• Use Low-Interest rate loans: If you are going to opt for a revolving loan look for one that has a low interest rate. The JTA Co-op Credit Union offers a Easi Access Loan that has one of the lowest rates for any revolving loan product in Jamaica. The maximum amount offered for this loan is $250,000 and as the name suggests it is very easy to access just complete the application form, submit your last payslip to us and we will do the rest.
• Personal Loans: If you qualify, you could also access a personal loan to cover your emergency expenses. The personal loan offered by the JTA Credit Union has a reasonable interest rate and no guarantors are needed to access it. Remember I started out by saying that you should use debt wisely? Make sure you stick to your plans and cover all the necessities. Most loans give you a repayment schedule stick to it, and where you find that you can increase your repayment or make additional lumpsum payments, please do so when possible, this will help you to repay your loan quicker.