Bankrate.com is just out with a survey of overall savings for Americans. Their data indicates that 71% of those surveyed have less than 6 months of income available for emergencies. Teske Financial Services helps clients identify unique and often unknown ways of saving at least six months of income along with identifying ways to make sure it’s readily and always available. Here’s the Bankrate link: http://www.bankrate.com/finance/consumer-index/financial-security-charts-0613.aspx and the primary chart:
The clients of Teske Financial Services (TFS) are provided with an understanding early on in the process of addressing their financial profiles that a minimum of 6 months of gross income in “liquid assets” is an essential step in overall financial success. Sometimes it may take time to achieve that position, but clients realize that this strategy is fundamental in the planning process. Not only does this cushion of savings provide a good defensive/protective position in their profile, but many clients are finding the advantages of having these liquid funds provides them more freedom for “offensive opportunities.”
On the defensive side, the 6 months of gross income saved helps in the event of a job loss, a disability, finding money for a down payment on a home, a large medical bill, making a large purchase for the home (appliances, furniture, upgrades, etc.) without having to use credit, or using the funds to replace/purchase a vehicle. This liquid savings often produces even more savings when our clients can increase their deductibles on auto, home or umbrella insurance – saving costs on those premiums. One of the best advantages of this six months of savings is to assist in addressing the “eroding factors” facing individuals and families (inflation, propensity to consume, technological change, planned obsolescence, etc.). A TFS advisor is trained in helping clients identify the proper positioning of funds for these purposes, using a financial “game board” and a set of strategies/rules to guide the process.
On the offensive side of this savings approach, these liquid assets provide our clients with opportunities and choices that would not be available without these funds. Oftentimes the client can use a portion of the saved funds to take advantage of deals that present themselves that they’d otherwise miss out on (short-term, high-yield investments, inter-family loans at higher rates than normal savings, start-up funds for unique/timely joint ventures, etc.).
When an emergency – or opportunity – arises, Teske Financial clients are able to “pull” on the resources that have been accumulated for the right purposes and at the right time. Select the Contact Us link on this site to learn how to enlist the services of a TFS professional and put yourself on the road to a more secure and certain future.