Building an Emergency Fund for Nannies
Stuff happens. Emergencies occur regardless of careful planning. Accidents, car maintenance, health problems, and getting laid-off are just the start of an endless list of possible threats to financial stability.
Once you have paid-off your debts you should build an emergency fund that has at least six-months of expenses. Look for a high interest savings account for an emergency fund. But remember, the savings are for emergencies (like if you are unemployed or get sick) only.
It isn’t smart to stuff extra babysitting money in your underwear drawer or under your mattress. Adding to a savings account is a safe way to stash your extra cash.
Should something unplanned adversely affect your financial plan, you should also have a trusted group of advisers. These advisers might include a banker, a lawyer, a financial planner, and an internist.
For example, if you have invested in the stock market and the value of your holdings go down, the unemotional perspective of a financial planner could be helpful.
The point is to be in charge and be prepared for emergencies. You should be knowledgeable enough to be unafraid to make changes and make plans with your money.
Tomorrow: Things to save, Things to save for.
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Was unexpectedly in hospital for a acare and it's $3,ooo per night! Plus, I have a series of follow up tests and exams which will be expensive. There went my holiday bonus and raise in two nights and three days (with more to come).I now know nannies ought to negotiate health insurance as a(tax deductable)raise.I presonally experienced why it is vital to build a savings for emergencies.
My Mom Boss said something about a nanny friend of mine who is going through chemo for breast cancer, "She should have bought health insurance."What nanny can afford those premiums. I wish an organization could group for nannies (union perhaps) and have a plan for nannies. Corporations have great plans because they have so many people to insure. Parents typically on hire 1 to 3 full time employees and it's hard to negotiate a great plan for so few (especially domestics that are just 1 they hire).Health Savings Accounts are tax deductible ways for parent bosses to pay and parents can afford a monthly payment (agreed % of your salary of course). It is a win win because parents can afford to pay the small amount, nannies can afford the small amount from their paycheck, tax deductible, and we can use it for medical expenses.I'd rather not post my name today, but really see it's a big problem for nannies too. (Glad you are feeling better).
Also why cheaper to pay for annual physical and tests than not and getting stuck in medical emergency in hospital.Annual physical and tests about $200 (a few hundred for specific test possibly) compared to $3,000 per night in hospital.Michelle near Boston
No I don't have a savings account, I have a checking account I use to pay bills. I live pay check to pay check. I hear parents say things like, "She should have had health insurance" and it's ridiculous. My rent is over $1,000 per month, then utiliites, car, groceries…Amazing how they assume we can afford the high premiums of health insurance plans on our own.