All of the snow that New York has received in the month of January alone
underscores the importance of setting reserves in any budget for
unexpected or emergency expenses. Snow removal is very expensive and
has cost New York City alone several million dollars. That is millions of
dollars that were alloacated for snow removal and now will need to be
reallocated from other budget area.
There are two great lessons learned here:
1) Reserves for emergency expenses are critical and must be part of any
Smart Money budget; and,
2) Expect the unexpected and allocate some funds toward this reserve
and on a periodic basis (perhaps weekly and event driven as in a
State Government's budget) check to see if your original allocation
needs to be adjusted.
Collectively the two points mentioned above comprise:
SMART MONEY RULE NUMBER 7:
BUILD AN EMERGENCY RESERVE FUND INTO YOUR BUDGET.
Happy Snow Day and even happier budgeting!!!!!!
