LifeSmart

An Exciting New Book Release You Don’t Want to Miss!

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We have exciting news to report!

Whether during speaking engagements or one-on-one conversations with parents, there is one question that pops up every time: “When, and how, do I let go?” 

Knowing how vital this question is to parents and their children, we decided to do a deeper dive into this critical topic. And, we’re pleased to announce that our new book, Wings Not Strings: Parenting Strategies to Let Go with Confidence, will be released by fall.

In this book. we survey the young adult landscape and share how today’s parenting is contributing to some serious unintended consequences. Then, we offer encouragement and strategies to emotionally and practically let go and give our teens wings to soar. Finally, we provide insights to help kids prevent and cope with anxiety and the addictive nature of technology.

The advance reviews of our new book are truly overwhelming! Here’s what one national parenting expert had to say:

“The tools and steps to guiding both the launching of our teens as well as our role in letting them go have taken me from questioning my own abilities to now being confident that I can release them to soar.”

We’ll have more to say in coming months, but wanted to give you this head’s up!

Stay tuned!

 

The Best Gift I’ve Ever Given. . .

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What’s the best gift you’ve ever received? How about the best gift you’ve ever given? Can you come up with your top three? What’s the common denominator between them all? What makes the gifts so special?

More often than not, when I ask people these questions, they usually respond with gifts that:

  • were not expected
  • were ones they (or the other person) really needed
  • showed how much one person knew or understood the other
  • were not necessarily things, but experiences
  • were sacrificial on the part of the giver

That’s how I would describe the favorite gift I have ever given. And today, I’d like to tell you about it. Grab a nice cold glass of egg nog and enjoy . . .

It would be my first Christmas away from home. Four months earlier, I trekked from Wisconsin to my new home in Seattle to seek my MBA degree. Having left all of my family and friends behind, I knew Christmas of 1979 would be tough.

After experiencing (and not enjoying) my first solo Thanksgiving, I decided to see if my meager bank account could support a surprise trip home. Although a flight to Green Bay was out of my price range, I could pull this off if I flew to Chicago and had someone drive me the remaining four hours north. Bless his heart, my friend Bruce offered to be my chauffeur to and from O’Hare.

Once my top secret trip was scheduled, I made a point of sounding extra lonesome on my weekly calls home. (Yes, a little nasty but in the end they wouldn’t mind!) My parents were having mixed emotions about this Christmas, too.

After our long, snowy ride, we arrived at my brother Rick’s house late on the 23rd and reviewed our plans. Rick had acquired a large empty cardboard box, big enough to fit yours truly. It would be addressed to my parents from the North Pole, and the grand unveiling would be set for 9:00 a.m. Christmas eve on their upstairs apartment doorstep.

As Rick drove me to my parents’ place, the suspense became almost unbearable. When we arrived just outside their door, I placed the box over my head and crouched down, sitting on top of the bottom flaps to hold it in place. After giving the “all clear” signal to Rick, he rang the doorbell and rushed down the stairs out of sight.

Let’s pause so you can fully imagine this. You are an unexpected Christmas gift on your parents’ doorstep and are about to shock the living daylights out of them! My heart was about to explode.

My mom, in her mid-Sixties, answered the door and shouted, “Oh my, Lil, what’s this?” (Lil was a similarly aged neighbor visiting.) Her presence only added to the raucous. Next was “My, this is heaaavvvvyy! What could be in here?” Lil added, “I don’t know, but let’s try lifting it.” Listening in on their speculation, I almost lost it!

Well, to make a long story short, these ladies tried their best to lift it (while I, inside, was desperately holding down the flaps!). When one of my boots stuck out, I knew it was time. I counted to three and in one move jumped out of the box and cried, “Merry Christmas!” Just try to imagine their shock. It was truly priceless. And, within five minutes, it was all around the entire complex.

A Christmas present no one would ever forget.

This season, we focus on what I personally consider to be history’s greatest gift—a savior, named Jesus. He was and is an unexpected gift that came to mean everything to this world, and He came from a Giver who knew exactly what we needed.

Over the next week as you spend time with those you love, think about the reasons behind your gifting. Is this the year for your greatest gift?

Merry Christmas from the LifeSmart family.

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Last week, we shared the first five of our top ten parenting goals for the year. Here’s a recap:

  1. Equip and empower for independence
  2. Develop soft skills and professionalism
  3. Invest in your relationship
  4. Build a strong work ethic
  5. Quash any sense of entitlement

We hope you took some quality time to consider how you’re doing and ways to improve. As imperfect parents, we can all do better. So in that spirit, let’s review the remaining five:

  1. Help them build their network: Parenting is a team sport. And, during the teen years, we need all the help we can get! Research shows that every child needs at least five caring adult role models who offer wisdom, love, encouragement, friendship, and connections. In addition, workforce recruiting is changing so much that having an inside advantage is almost a must. The time for your teen to build his/her network is NOW, and parents, you can give them a big head start by introducing them to great people you know. It’s one of the most valuable gifts you can give to your children.

 

  1. Promote effective time management: Today’s teens and young adults are bombarded by attention grabbers and distractions. Whether it’s technology, social media, or video games, their ability to focus, problem solve, and spend time on what really matters is being compromised. It’s vital to teach our children that time is a precious asset that needs to be managed wisely. Among other things, that means: 1) developing daily “to do” lists organized by priority and urgency, 2) understanding that work comes before play, and 3) limiting the time they spend on low value activities like social media. It’s all part of the “adulting” process, and one day they’ll thank you for it.

 

  1. Cultivate self awareness: In our conversations with high school (and even college!) students, we’re struck by how little they really know themselves. And yet, many schools and parents are pressuring them to know exactly what career or major to pursue. That’s one reason why we encourage students to build their self awareness. Among other things, this involves: 1) inventorying their strengths (assets) and challenges (constraints), 2) identifying their interests and passions, and 3) understanding their personality style and personal preferences. Tools such as the DISC personality test and LifeSmart’s Personal Balance Sheet help students to understand who they are, what they have to offer, and what opportunities will help them thrive. Let’s help them make these long-term decisions with some clarity!

 

  1. Avoid overcommitting/respect balance: You’ve all heard about the rise in mental health issues among teens and young adults, including anxiety and depression. We’re stressing out our kids in a major way, and some of this is the result of overscheduling and committing our kids to build their resumes. Their lack of down time to decompress is clearly taking a toll. Parents, we need to be mindful of how much free time our kids have to reflect, chill, enjoy nature, and pray if they’re so inclined. Let’s be more vigilant about the time requirements for activities before they sign up. Proper balance is a key ingredient to good mental health, and you can help make that happen.

 

  1. Have fun: College prep exams. Resume building. College applications. Career planning. Financial aid forms. Yes, the upper high school years are fraught with pressure—all the while our students have to be… students! And, as parents, it’s easy to be so consumed by our children’s success that we get stressed out too. When that happens, we can forget about one of the most important things for a family’s well being—having fun! What do your kids enjoy doing together the most? Camping? Hiking? Playing sports? Watching movies? Playing games? Building things? Cooking a meal? Attending concerts? Enjoying a campfire? Whatever it is, be sure to make room for it. The years really do fly by, and these moments will build relationship capital for a lifetime. #enjoyyourkids

 So, these are our top ten. How about yours? We hope you enjoyed them and that they serve you in the years ahead. We’d love to hear your thoughts and encourage you to share with your friends, too.

With best wishes for stronger families and brighter futures,

The LifeSmart Team

 

Commit to Being a Lifelong Learner

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Education is not the filling of a pail, but the lighting of a fire.

-William Butler Yeats

 School’s out! I am not sure who loves to hear those words more—kids or teachers! Can I get an “amen?” Old and young alike are looking forward to sunset barbecues, beach days with family, copious amounts of sunshine, and a little more sleep. In my school days as a youngster in Wisconsin, it was all about, “Heading Up North’.” It’s a well-deserved break for everyone, and I hope yours is unforgettable!

However, it’s important to remember that just because school’s out doesn’t mean learning has to go out the window, as well. Education isn’t just for classrooms! Lifelong learning is a pursuit that will serve kids (and adults) well for the rest of their lives.

In this global, knowledge-based economy with an endless database of instantaneous information at our fingertips, students need an insatiable appetite for learning. This means not only expanding their subject knowledge, but also having diverse interests. What ways are you as a parent, mentor, or teacher helping them explore other subject areas that challenge their minds or satisfy their curiosity?

I grew up living the simple life in small-town Wisconsin. It was a childhood I wouldn’t trade for anything in the world. I spent most of my free time either playing sports or hanging out in the woods with my friends. But, while that got me through high school and college just fine, I began to notice something early in my career… most of my peers were more intellectually well-rounded than me. I especially noticed it at gatherings when politics and world affairs were discussed.

I knew I had some serious catching up to do, especially considering the growing number of client meetings I attended. Thankfully, once I committed to stepping up my intellectual game, my confidence grew. It made a huge difference in my investment management career. Looking back, I regret delaying that process.

Here are some ways you can help your teen (or yourself) engage in continued learning this summer and always. Encourage them to step outside of their comfort zone—I promise the benefits will be bountiful.

  • Learn a new sport or revisit one you haven’t played in awhile
  • Make an “I’m interested in____ list” and brainstorm ways to tackle it
  • Catch up on current events by reading REPUTABLE newspapers or magazines (sensationalist social media headlines don’t count)
  • Volunteer for a charity
  • Visit the library and check out a book on a topic of interest unrelated to your career. A country you’ve always wanted to visit. A hobby you’d like to pursue. A historical figure you’ve always admired. An era that intrigues you.
  • Read a book that wasn’t assigned to you or is outside the genre of something you’d normally read
  • Write a book, essay, or poem; cook a meal you’ve never made before; draw or paint something that interests you
  • Check out all the museums near you
  • Job shadow (or have coffee with) someone who is employed in a career field you’re considering

Encourage the young people you know to stretch their wings a little and be lifelong learners. It’ll help them advance in life and make them more well-rounded, dynamic, and confident people.

 

How do YOU keep sharp and keep building your repertoire of skills and knowledge?

 

 

Career Readiness Essentials: Knowing What Employers Value

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career fairHere’s a true story from my hometown. She was scheduled to arrive for work as a server for a small family restaurant at 5:00. However, she apparently received a better offer. At 4:55 she called the owner, informing him that she was sick and unable to work. But, merely 15 minutes later, she would be posting pictures of herself with friends at a beach party some seven miles away. When she showed up refreshed for work the next day, she was fired on the spot.

This case example is worth sharing in your homes and classrooms because, in various forms, stories like this are becoming commonplace. Whether from inexperience, lack of training, or simply misguided attitudes, many teens and young adults are struggling on the job. They’re learning the hard way that trophies, so easy to come by when they were young, are much more difficult to obtain in the workplace. But, with proper training, stories like this are preventable.

In last week’s installment in our career readiness series, we discussed the importance of self awareness as the necessary first step to a successful career. Finding a good match begins with knowing me!  Now, in the second step, I need to get to know you: my current or potential employer. But, judging from the horror stories I hear, employer perspectives are a missing ingredient in many career readiness programs. Students need to understand that their career success involves much more than smarts and skills.

To this end, here is our top ten list of qualities desired by employers:

  1. Integrity: adherence to moral and ethical principles; trustworthiness
  2. High standards: a commitment to excellence in work, relationships, and attitudes; actively seeks out feedback and professional development
  3. Reliability: dependable in fulfilling responsibilities; adopts an “on time, every time, with excellence” mentality
  4. Motivation/work ethic: self starter who is willing to go “above and beyond;” industrious and efficient and follows instructions
  5. Team player/relational skill: demonstrates positive interpersonal skills with fellow employees, clients, prospects, suppliers, and the community; encourages others and focuses on the company and team over self
  6. Positive attitude/enthusiasm: displays a constructive and uplifting attitude and passion for both work and the company
  7. Innovative: demonstrates curiosity, creativity, and a commitment to improve processes, products, and services
  8. Resilience: faces challenges head on, rebounds from adversity, and resolves conflict along the way
  9. Professional manner: displays a professional attitude, appearance, and communication
  10. Commitment: is loyal to the company’s mission and core values and represents the company well in the community

Whether we’re parents, educators, or mentors, it’s vital that we train the next generation with these guiding principles. While doing so, here are some important things to keep in mind:

  • Help them understand that they are there to serve the company, not the other way around. Disabuse them of any sense of entitlement or notion that the world revolves around them.
  • The time to begin modeling these qualities is NOW. Have your students rank themselves on a 1-5 scale. For which qualities are they a 5-star role model? Where do they need to up their game?
  • Through role-playing exercises, have your students pretend they are the owner of a company recruiting for a new position. What qualities would they be emphasizing as they evaluate candidates? By switching them from their usual subservient role to that of the boss, they will quickly appreciate the employer’s perspective.

Once students appreciate the importance of these workplace qualities, they will be better equipped for their entire career management process. That means better cover letters, resumes, applications, interviews, and on-the-job performance. Understanding the qualities valued by employers should be an integral part of your career training efforts. It would have certainly helped avoid a fiasco in my hometown!

Is It Time to Revisit High School Course Requirements?

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When we speak to educators and administrators at various conferences around the country, one of the questions we invariably ask is:

“How many of your schools have defined a well prepared graduate for life?”

Sadly, we’ve yet to see more than 10% of audience members respond affirmatively. Of those, comparatively few admit that their school has a specific pathway to build these required skills.

At the same time, out in the “real world,” we find that:

  1. Employers are lamenting the lack of soft skills among younger workers (and applicants), thereby necessitating additional training.
  2. The US ranked 19th out of 28 countries in college completion in 2012, according to an OECD study1. (It ranked first as recently as 1995.)
  3. Colleges are reporting significant increases in student visits to their counseling centers, citing factors such as depression and anxiety.

It is apparent from multiple perspectives that we are falling short in preparing our children for independent life. While this is a complex challenge with many contributors, I’d like to share what I consider to be a primary source of the problems: the course requirements for high school graduation.

The US economy has changed dramatically in the past few decades, requiring different skills than before. Also, post-secondary education has become much more popular, which argues for greater advance preparation.  And, jobs for students during high school are more difficult to come by, limiting opportunities for valuable workplace skill development. In light of these factors, the question is whether our education requirements have appropriately adapted. Many believe they have not—and we agree.

At LifeSmart, we believe students need greater applied learning and skill development and practical preparation for independent living. This would significantly enhance both career- and life-readiness for our nation’s high school graduates.

While people may disagree on which courses deserve the status of a requirement (versus an elective), we believe the following would help address the skill gap:

  • College and Career Readiness: this would prepare students for their next education steps, as well as the four career mastery stages: exploring, qualifying, marketing, and excelling. Valuable perspectives from employers would be included.
  • Independent Living: this would offer students a clear glimpse into “life on their own,” including leadership, soft skills, relationship building, budgeting, and everyday living skills.
  • 21st Century Skills: this would help students build the analytical, problem solving, collaborative, and communication skills needed to succeed.
  • Personal Finance: this would include the basics of budgeting, banking, investing, credit, identity protection, insurance, car buying, and loan applications. (It would also improve our nation’s financial literacy!)
  • Entrepreneurship: this course would expose students to all aspects of creating and managing a business (and learning about capitalism in the process!). Knowing that most students will work in a business or organization, this would offer valuable insights into how the “real world” operates.
  • Communications: this course would include both verbal and written personal and professional communications. In today’s highly collaborative workforce, communication skills are a must. The casualness of contemporary communication has become a major impediment to many young people adapting to college and professional environments.

For some schools, this would involve converting existing electives into requirements, and others would involve new course offerings. Of course, it would be helpful to incorporate these practical skills in other classes where possible.

These are our ideas. We’d love to hear yours!

4 Tips to Help Your High School Student Succeed

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We just finished up an amazing week at the National Dropout Prevention Network conference in Detroit, MI. The LifeSmart team was able to share our perspective on what we can do as educators, mentors, and parents to help set teens up for success and graduate high school with their peers. Consequentially, we’ve got high school graduation on our minds—even if Halloween hasn’t yet arrived!

Are you a parent or a teacher of high schoolers? Have you ever wondered what YOU can do to prevent the potential of your students’ dropping out, or how you can equip your student for optimum success? Unfortunately, one million kids leave school every year without a diploma. We’d like to share with you our top four ways to equip high school students for success and help them cross the graduation finish line.

  1. Instill resilience. Let’s face it. Life gets difficult. And it can be especially difficult for students who are dealing with struggles at home (broken families, drugs and alcohol, emotional/verbal/physical abuse), or who come from a low-income background. One of the most important qualities for young people to embody is resilience; learning to handle adversity with courage, integrity, and determination. Take time to talk with your teen about obstacles (because that’s exactly what they are, obstacles—not derailers!) and the importance of overcoming them, growing from them, and, ultimately, becoming an “inspirational encourager” to others who are facing similar challenges. Always be mindful of what other side to today’s valley might look like..
  2. Cultivate your relationship. Whether you’re a parent or a teacher, it’s important to cultivate a relationship with your student, especially if you notice the dropout “warning signs.” Take time to talk and learn what makes him/her tick. Are they feeling alone? Is there a certain subject they just don’t get? Are they overwhelmed with too many commitments? Position yourself as an ally—someone who can be trusted—and cultivate a relationship of trust, acceptance, and encouragement with your teen. And, while you’re at it, always seek opportunities to affirm their uniqueness and value. It’s a powerful way to build hope and belief in themselves and their future. They’ll never forget you for it.
  3. Rely on community resources. I’m sure you’ve heard the age-old saying, “It takes a village.” It’s true! Without the wider community supporting the schools, and without parents and schools relying on resources within the community, success would be hard to come by. There are great organizations out there (like the Boys and Girls Club, Big Brothers/Big Sisters program, and more) that can help your student make friends, bond to other positive influences, and stay on track. Also, encourage them to identify their interests and passions, to offer a glimpse of what their future can look like. It builds motivation, too.
  4. Make sure your child is surrounded with positive influences. Remember, your student needs to have other wise and encouraging voices in their life other than their parents and teachers. In fact, research shows that each student needs at least five adults in their life who are there to offer support, wisdom, advice, trust, and encouragement. Sometimes kids listen to non-parent voices the best! The same goes for their friends. If you notice your student is hanging around with the wrong crowd, or tapping into destructive media influences, address it immediately.

 

Our students are our future—and their success is of utmost importance. Let’s position ourselves as their safety net and rally around them with the support the need to ensure their graduation and life success.

Teach Your Teen to be Smart about Technology Use

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As parents, educators, mentors ,and coaches, most of us have noticed something about the teens and young adults we work with daily: THEY’RE GLUED TO THEIR PHONES!

We’ve probably all said it: “Back in my day, we didn’t even have cell phones…” And yes, that’s the truth. And we did just fine! However, it’s important to acknowledge the element of connectedness that millennials and the following generations possess. Thanks to the advancement of technology—most notably social media and smart phones—teens are able to be more in touch than ever and engage in the world around them in a way that was never possible for us. The sense of community and camaraderie that is fostered from this connectedness is pretty amazing!

That being said, it’s vital the teens in your life know that there’s a time and a place (and an amount!) for technology, social media, and smart phone use. Although it has many benefits, technology has some downsides that we need to consider. We should be considering these “cons,” so to speak, for the social, psychological, and physical health of our younger generation.

Here are some factors to ponder:

  • We text or email rather than talk. This is having significant consequences on communication skills—ask any college professor or employer. We now have a bull market in remedial reading and writing programs, and many young people are having difficulty carrying on conversations with adults.
  • Our lives are more distracted because of our numerous interruptions (a text message, a new Facebook message, an Instagram comment, an event reminder, an e-mail, etc.) and our attention spans have shrunk.
  • Kids spend less time using their imaginations, reading, and being active.
  • We lose the ability to read body language and social cues in other people.
  • Our waistlines are growing as we’ve become more sedentary.
  • We sleep poorly, as online activities keep us up too late and the constant stream of information makes it difficult to turn off our brains. Also, staring at a screen before bedtime can mess up our internal clock and make sleep more difficult.
  • We are being consumed by “busyness” and it is affecting our responsiveness to true priorities, such as family togetherness, activity, spirituality, service, etc.

Funny, I don’t recall seeing warning labels about these side effects when I purchased my smart phone!

I know I’m probably sounding like Fred Flintstone, but I believe there’s some middle ground. When I hear about car accidents occurring because of drivers’ texting, or when I observe my daughter and her friends’ texting when they’re supposed to be enjoying each other’s company, I think the pendulum may have swung too far.

Here are some ways you can encourage the young people in your life to be smart about technology use. Let’s help them (and us!) find that middle ground:

  • Strongly consider setting technology-free hours within your home. For example, between the hours of 6pm and 7 pm for dinner, and from 9pm or 10pm until morning.
  • Parents, place limits on the amount of time your children spend on technology each day. Be on guard for any collateral damage from technology use (e.g., relationships, communication, productivity, motivation, attention spans, irritability).
  • Lead by example, and show the teens you know how to enjoy life’s special moments without their phone. Go for a walk and enjoy good conversation (no need to post a filtered Instagram shot of the scenery!). Go outside and play volleyball or basketball or kick-the-can. Go for an all-day hike on the weekend, and challenge everyone to leave their phones alone the entire time.
  • Disengage from phone use when you’re together at coffee shops, restaurants, and the like. All-too-often I’ve seen parents as phone addicted in public as their kids. Isn’t this supposed to be “quality time?”
  • If you’re a teacher, make sure your classroom is a phone-free zone. Encourage practices that help strengthen your students’ creativity, activity, and resourcefulness.

Remember that time is a precious asset and that relationships are designed to be personal.  Your brain was designed to be active. Your body was designed to move. Don’t let your electronic devices interfere with any of that!

Out with the Old, In with the New!

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A fresh year always inspires fresh dreams. Most of us think, “What are the things I could improve in my life, if I had a fresh start?” For some reason, “January 1st” symbolizes new possibilities and a chance for a “do-over.”

In what area of your life would you like a fresh start? In your parenting or other relationships? Your performance at school or on the job? How about being more financially savvy or more organized? Or, maybe yours is like mine: to take control of busyness and reserve more time to reflect. All of these are admirable aspirations—but how can we make them a reality?

Most successful people accomplish their aspirations by staring with dreams and then establishing goals and plans to help make them come true. And, they know that the most effective goals are both specific and measurable (as opposed to vague and difficult to evaluate). As you start to identify your aspirations for 2016 and beyond, it’s important to develop short-, intermediate-, and long-range goals to help get you there.

Even if you’re not naturally a goal-setter, it’s not difficult to become one.  Start by imagining what you want your life to look like. What are the large-scale goals you hope to achieve? These are your long-term or lifetime goals.  It’s important to set these first because they will shape your overall perspective and help frame your smaller and shorter-term goals. Think about such areas as:

  • Education and learning
  • Career
  • Marriage and family
  • Finances
  • Community service
  • Relationships
  • Spiritual life
  • Physical goals (sports, etc.)
  • Talents and skills
  • Travel
  • Experiences
  • Retirement

Once you’ve established your long-term goals, you can set some medium-term goals (e.g., three to five years) that will help you achieve your long-term goals.  From there, you can set one-year, six-month, and one-month goals, all of which will ultimately contribute to the larger picture. Periodically check on your long-term goals to make sure they remain high on your list. Also, monitor your progress on your medium-range goals to make sure you’re on track.

(Parents, you may want to make some parenting goals … check out our book, Parenting for the Launch, for some ideas to help you set goals and create a family mission statement.)

Finally, start making daily to-do lists, prioritized by importance and urgency. If you do, you’ll be contributing on a daily basis toward the things that will make your lifetime goals and dreams possible. Here are some guidelines as you do:

  • Phrase your goals in the positive, not the negative
  • Make them realistic goals—ones that are possible and achievable
  • Make them measurable and specific, such as “visit five continents” as opposed to “travel around the world”

What are your aspirations for 2016? Beyond that? This can be fun and lively discussion with family and friends over the holiday season. Make a plan to check back with each other next New Year’s and see who has gained the most ground in accomplishing their goals.

Why YOU Need an Emergency Savings Fund

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Sometimes the unexpected happens. You lose your job. You have to take a pay cut when your employer faces a business downturn. Your car just died. You just got in a wreck and will be out of work for months. Your roof leaked (or, in our case, our septic system backed up!) while you were on a long vacation. What will you do?

Hopefully you’ve planned for emergencies.

According to a 2011 survey by the National Foundation for Credit Counseling, 64% of Americans don’t have enough cash on-hand to handle a $1,000 emergency. This means that if a crisis strikes, big or small, and you DON’T have money put away for emergencies—you could be in for some real stress and heartache.

An “emergency fund” is an account set aside with money earmarked solely for high impact situations that could substantially affect your wellbeing or quality of life. As a rule of thumb, a fund that contains four to six months worth of average monthly expenses (invested in safe, short-term investments) will help serve as a buffer in these unfortunate situations. During periods when the economy is weak and your job may be in jeopardy, it’s sensible to build a six to twelve-month emergency to give you an extra cushion. Establishing an emergency fund should be your first financial priority once you begin your career.

To determine how much you should have in your emergency fund, you should first identify what constitutes six months’ worth of expenses for you. Add up what you spend each month on normal household budget items and multiply by six. Make sure you include what you pay for your mortgage, utilities, loans, insurance, gas, groceries, and other essential expenses, allowing a small amount for incidentals and entertainment, etc.

Then, to avoid being tempted to spend the money you need to use to build your emergency fund, it may be helpful to set up automatic account transfers (or automatic deposits from your paycheck if your employer offers this). You’ll also need to be disciplined and NOT give into the temptation to withdraw from your emergency fund for vacations, high tech toys you think you can’t live without, or for any other non-emergency expenses or indulgences.

Ultimately, what an emergency fund buys you is peace of mind. If something comes up, you won’t have to scramble to come up with the money you need and you won’t have to turn to credit cards or other debt. It’s like an insurance policy that you’ll be glad you have when life throws you a big fat lemon!

How have you created an emergency fund? It’s never to soon or too late to start. Share your ideas, experiences, and questions with our online community; we’d be glad to hear from you. And pass our site along to a friend and suggest they subscribe; they might be thankful for it!