There’s always a lot of talk in the realm of personal finance about emergency funds. How much should one have? Where should one keep it? I’ve talked about these before on this site, and I don’t want to rehash it all right now. I do however want to mention an aspect that I haven’t really seen addressed.What happens if you’re involved in a true emergency such as a natural disaster? I’m talking about something where the normal infrastructure has either been destroyed or isn’t accessible. Would you be prepared for such a circumstance?

Obviously there are a lot of issues here, but I’m only concerned with the financial in this space. Regardless of how much you choose to keep in an emergency fund and at which institution you decide to hold it, it would probably be a good idea to keep at least some money in cash for true emergencies. When I say cash, I mean actual cash money kept at your home or some other self-designated place.

How much you decide to keep on hand is a choice that you’re going to have to make based on your circumstances and needs. I would recommend keeping whatever you’d need for at least a period of 72 hours. This would obviously be only for extreme cases, but I’m sure you’d be glad to have it if something awful were to happen. Like I stated before, this isn’t your typical emergency fund, but it’s another part of your personal finances that you ought to consider.

My wife and I just got back from MacDo where we ate dinner and picked up a movie at RedBox (Blades of Glory if you must know). We were able to pick the movie up for free which is always a plus.

Obviously, it wasn’t a very fancy outing but we were able to get out and talk and generally have a good time. We also really like their fries which is a lot more than I can say for some other burger joints (if you’re familiar with In-N-Out you know what I mean). Probably the most obvious up-side to the whole outing was that it didn’t cost us a fortune. While we could have gone to some place like The Olive Garden, I wouldn’t have come home any happier or satisfied, but I definitely would be out a lot more money.

I’m not writing this to say that you should all rush out to McDonald’s because it’s the greatest experience ever. If you haven’t already formed an opinion about the place, I’d probably wonder what hole you’ve been living in. But that’s not the point.

What I’m getting at is that things don’t have to cost a lot of money for them to be enjoyable. For some reason people have gotten it in their heads that the more money they spend the better time they will have. I don’t believe this is the case. We should really be more self-aware and do those things that we actually enjoy instead of succumbing to the hype of what we’re told we should enjoy. And I enjoy MacDo every now and then. What do you enjoy?

When many people are looking for their first “real” job after college or they’re looking for a new career, one of their biggest concerns is “how much money am I going to make”. While this is certainly an important consideration in selecting employment, don’t forget the many other factors that will affect your situation.

Probably the most important aspect (aside from the salary) of a new job is where you’ll be located and therefore the cost of living in that area. It’s no secret that $50K in New York or California isn’t the same as $50K in Kansas City. In one case you’d barely get by and in the other you’d live quite comfortably. When you throw the cost-of-living into the mix, it can be rather difficult to compare different opportunities on an equal plane.

I found a tool online, however, that can help with this exact problem. Bankrate.com has a cost of living comparison calculator that lets you compare different salaries in various places of the country. You select the city you’d be moving from, the city you’d be moving to, and the current salary in the first city. It will then tell you what salary you’d need to earn in the new city in order to maintain your current standard of living.

I would mostly use this tool to give you a ballpark figure of the differences between two cities though and not as an ultimate determining factor. Even though it’s important to know, there are a lot of other things that should be considered when making such a decision.

We often tell ourselves that we need to do something about our finances without knowing exactly what we should do. Having the goal to improve your financial situation is great, but it doesn’t do you any good if you don’t have any idea what steps will get you there. Here are some ideas that should get you started:

1. Open up an online savings account. There are a couple different benefits to having such an account. The interest earned on these accounts is almost always greater than what you can expect at your local bank. Another reason for an online account is that it’s at a different institution that where you normally bank. There will be less temptation to frequently raid this fund since a transfer isn’t instantaneous. Give ING Direct a try since they’re also FDIC insured.

2. Take the credit cards out of your wallet or purse. This step is for those of you that can’t seem to figure out why you’re never able to pay off entire credit card bill when it comes (you know who you are). It doesn’t make you any less of a person, but it is good to recognize in yourself. Hide them, cut them up, put them in water and freeze them, do whatever you need to do to keep you from using them. You’re an intelligent person, you can figure this out.

3. Determine a percentage of your take home pay that you can save, and commit to actually saving it. Once you’ve determined the percentage, make sure you transfer this amount into your savings every time you get paid. In my opinion, this is far more effective than trying to put away a specific dollar amount every month. Every time you get paid, the first thing you do is transfer 10 or 20 percent to savings. You don’t have to think about it; you just do it. What’s left over you then use for your living expenses.

4. Don’t ever go out to eat without a coupon. This might seem like an odd one, but coupons are so available these days. If you plan ahead, you can get great deals through Restaurant.com, or you can just use what comes in your “junk mail”. I would say just stop going out to eat, but since you’re going to anyway, just make sure to use a coupon.

5. Set aside a specific amount of cash each month for Christmas. Get an envelope and write Christmas on it. Each month, put some amount of money into this envelope. At the end of the year, don’t spend any more money on Christmas than what’s in the envelope. People who do this have actually found that they don’t spend everything in the envelope which isn’t really a bad thing.

So many people are concerned with what type of car they drive. This isn’t really a new phenomenon, but more people are able to satisfy their wants these wants because of various reasons such as cheaper prices and more available credit. In fact, it’s one of the things I see quite frequently among a lot of young professionals. Soon after they get a “good” job, they find themselves looking for and buying a new car.

So, what does your car say about you? Or what do you want it to say about you?

For some, it says that they’ve finally “arrived”. I’m not even sure what that really means, but it’s the motivation for a lot of people. Interestingly enough, no matter where people are in life, they usually always want more. But hey, you’re there, right?

Others go for something that makes them feel rugged, or tough. This is usually accomplished with an SUV or a truck. What I find most interesting here is when I see people in something like the Lincoln Mark LT or the Cadillac EXT. They’d never think of putting yard waste or concrete in it, but hey, it’s a truck; they must be tough.

Still others will opt for something that says “smooth and classy”. This type of car is becoming all too common these days. Just look at the abundance of the BMW 3-series. If this is what you’re after, enjoy being just like everyone else.

Another group of people choose not to care what their car says to others. Instead they care more about what it says to them. They drive affordable and reliable vehicles that are oftentimes already paid off. It generally won’t be the newest or the most prestigious, but it reminds them of their financial savvy. It tells them that they are fiscally responsible and put higher priority goals ahead of their “image”. This style obviously isn’t for everyone, but it’s a category worth considering for yourself.

With this being said, What does YOUR car say about YOU?

A few months ago I wrote an article entitled, 4 Reasons You’re Not Rich. Today I’m going to continue on this theme with 4 reasons that you’re not getting ahead.

1. Credit Cards

A good portion of the population has credit card debt. What’s even more unsettling is that many people consider at least some level of consumer debt to be “normal”. There’s already been plenty written about how to combat this problem, but even if you pay off your credit cards every month, they can still keep you from getting ahead. It’s incredibly easy to spend money with these cards. If you’re not careful, you’ll end up spending more than you would have otherwise. In this scenario, you’re losing money that you could have saved or invested instead. Just paying off your cards every month isn’t enough. You still need to watch how much you’re really spending.

2. Lack of Planning

Even when you have a budget and think that you’re monthly expenses are covered, you can still run into problems. Do you remember the insurance premiums that come due every six months, or does it always set you back a little. What about car inspections and registrations that occur once a year or so? It also wouldn’t be a bad idea to think about Christmas in July. For some reason, this yearly holiday seems to blindside people financially. You know it’s coming; plan for it.

3. The Save then Spend Mentality

This typically wouldn’t be considered something that would keep you from getting ahead. It’s good to save and not buy on credit, right? The problem arises when you save a decent sum and then go spend it all to buy a car or take a “much needed” vacation. This actually isn’t any different from spending everything you earn. If you’re continually spending all your savings, you won’t get ahead.

4. Impatience and Lack of Follow Through

When one begins to invest, the investors continued contributions are the main reason that the account balances go up. Investment gains tend to increase exponentially, and the investment returns don’t begin to trump the contributions for quite some time. Too often, people don’t see the immediate benefit of investing and they either stop contributing or withdraw everything all together. In order to get ahead, be patient and let the power of compounding work it’s magic.

With the abundance of online savings accounts that are typically offering over 4%, too many people are essentially leaving money on the table by keeping all of their cash at their local bank. There are benefits to using a local bank, but it doesn’t mean that you shouldn’t look at other options.

A local bank allows you to make in person deposits and withdrawals and gives you access to their ATMs which are most likely very convenient. Having someone to talk to when you have questions or concerns can’t be understated, but you can take advantage of these things without having to keep all of your money there.

Most online high yield savings accounts can be directly linked to your existing checking account so you can transfer money back and forth quite easily. If your main concern is that you need the availability of your cash, you can have it transferred within about 2 to 3 days. When you don’t need your money, it’ll be earning a nice rate for you that’s well above the usual 0.5%.

Your traditional bank is probably now best used as a way station to direct your money to better places. You’ll still be able to use your usual checking account and ATMs, but you’ll also be able to have the benefit of the best prevailing interest rates. So, do yourself a favor and look into an online high yield savings account.