#031 — Identify Your Underwater Financial Volcanoes
7.9 Earthquake Near Tonga Sparks Eruption
Last week, a volcanic eruption close to the South Pacific nation of Tonga has destroyed rich birdlife and vegetation, leaving a wasteland of black ash and tree stumps, witnesses said Friday. The volcano, on the small, uninhabited islet of Hunga Ha’apai 63 kilometres (39 miles) northwest of the Tongan capital Nuku’alofa, began erupting Monday. It continued to spew Friday even as a major earthquake with a magnitude of 7.9 rocked Tonga’s main island of Tongatapu.
Tonga’s chief geologist Kelepi Mafi, who inspected the area Thursday, said the volcano has two vents, one on Hunga Ha’apai and another around 100 metres offshore.
The volume of the rock and ash coming from the vents has completely filled the gap between the offshore vent and Hunga Ha’apai, increasing the island’s land mass by hundreds of square metres.
What Are Your Financial Underwater Volcanoes?
When life brings a little trembling, there are many financial issues that lie just beneath the surface that can erupt at a moment’s notice. There is no doubt that life comes at us fast, and it seems as if we’re always playing catch-up in some regard. If tragedy or just plain life happens unexpectedly, what areas of your financial life would you not be prepared?
Today I offer a pretty simple challenge. Identify those Financial Underwater Volcanoes in your life today.
For me, I’d have to say first & foremost is estate planning (a will). This seems to get pushed to the backburner — and I’m an attorney who can write up my own will for free! Perhaps it is because I know I can write a decent will that I’m waiting for the time to construct a will that is taylor-made for my family. When in reality, I should get a basic will in place and fine-tune the details later.
Another area of potential Underwater Financial Volcano eruption would be our emergency fund. But we are working on this one — we just paid off our car and are now building up our baby emergency fund to at least 3 months’ expenses.
As you can see, I’m not perfect either. But once we can identify these “hot-spots” (yes, pun intended), we can go about rectifying the situation. I’d hate to see your island be destroyed when you could have minimized the damage.
What are YOUR Financial “Underwater Volcanoes”??
photo by The Sunday Times
MyMoneyMinute — Identify Your Financial Underwater Volcanoes
Personally, after just getting out of debt, I am starting to see the importance of having saving of at least a few months and even a full year.
Although, this varies if you are single, living at home, have your own place, mortgage, married, etc.
@tom
Tom, you make a great point and I think it’s important to heed the advice of those like you that have reached the top of the mountain.
It does vary based on life circumstances, but usually the more responsibilities (spouse, kids, house, etc.), the more tendency you have to want a bigger emergency fund. It’s probably a good idea to take the advice of people like you or others with greater responsibilities on their shoulders in their savings habits.
Thanks for the comment!