
20. Plan For The Unexpected
Many people have credit cards to help them with unexpected expenses. The result is that when they get a flat tire or have a medical emergency, they wind up in debt and have to pay interest that can quickly accrue and derail their finances.
Get ahead of the curve by planning for unexpected things to happen. Create an emergency fund of $500, and save to grow it. Get it up to $1000, then $1500. Keep putting money into your emergency fund until you get to the point that you have three months of expenses covered. Then, you can weather anything from a medical emergency to a job loss. That will be crucial to helping your middle-class family achieve financial freedom.