What's your MOJO???

Hi Loveley's,

What's you Mojo?

Or let's start with what I actually mean by Mojo. Since reading the book "The Barefoot Investor", I have started to acquire quite a significant amount of Mojo which is Scott Pape's way of saying "Emergency Fund".

So the basic idea is to save some percentage of your income (say 10%) and put it away for a rainy day for when that emergency comes.

Now while it is great to a $1000 saved up, but the reality is that when that emergency hit's it is likely to cost a lot more. Say a car accident or a layoff  and you need to bridge the gap of lack of income with your emergency fund. How long would you be able to live the same way you live today without any money coming in?

If you answer is forever, congratulations! (Why are you even reading this)

If your answer is not for too long. Keep reading!

I have started with about $0 in my Mojo account. That was 2 years ago.

Now my emergency fund would be able to sustain my life as it is today for about 8 months.

This gives you that extra bit of reassurance 'just for when' it's needed most, hence "MOJO"

You can just open an high-interest savings account with your bank and setup your regular payment with the app (no end date for transactions).

This is an easy way to set and forget your saving and you'll be surprised how much money you will soon have......

NOW!
A word of warning: If you feel the strong urge to always look at how much money you have and what you can spend it on, you should probably open that account with a different bank to kind of isolate it from you normal bank account. This makes it less likely for you to look at and also reduces the temptation as this money is not in you face all the time and you tend to forget about it...


With that bit of financial safety behind you things tend to seem a lot less frightening, like that layoff or the fact that your car just died. It's fine, you'll be fine.
The emergencies that do occasionally come up will not be as problematic as they used to be and won't have on impact on your lifestyle.

Now go and set up your own Mojo!

Until next time - be awesome!



PS: I am not affiliated in any way with Scott Pape's Barefoot Investor and will not receive kickbacks of any kind! I just love his style and what he has achieved in helping millions of people boss their finances! I highly recommend his books!
If You read this and you are Mr. Scott Pape, feel  free to get in touch with me! I'd be honored.