“Grant me the financial savvy to change the things I can, deal with the things I cannot control and the wisdom to know the difference.” Taking a cue from this time-honored serenity saying, perhaps it’s time to develop your own financial savvy mantra. Consider this scenario:

You just paid off your last credit card bill. Finally it feels as if you are making some progress. Then, wham, you get hit with an unexpected bill. You are tired of getting caught in the vicious cycle of draining and rebuilding your emergency reserve, and you feel powerless. Does this sound familiar? 

As you get caught up once again, you glance at the newspaper headlines about a possible utilities rate hike and, of course, the oil disaster. You wonder how this will affect your pocketbook. Do you need to somehow factor these into your budget?

So where does this end? How prepared do you need to be? 

Analysts speculate about the financial impact of the BP disaster in the Gulf. CBS Money Watch predicts that you may have to pay more for gas, seafood or a retirement condo in Florida.  

We cannot possibly be prepared for every disaster; however we need to anticipate and budget for things that are highly likely to occur. Whether it’s a new set of tires, holiday gifts or recreational activities, these are not emergencies and need to be accounted for in your budget. 

My advice: It’s prudent to establish an emergency fund by paying yourself first — even a small amount just to get started. It’s important to have a contingency plan and to get in the habit of allocating a set amount each month. If you don’t, you are burying your head in the sand hoping that you can just wing it. Believe me, “winging it” is not a sound financial plan to pursue. 

Maintain a healthy balance and live within your means. If you can follow financial adviser Dave Ramsey’s “rice and beans” diet, good for you — do it. I personally believe in optimizing your lifestyle, not minimizing it, so if you struggle with self-discipline and motivation, ask a friend or family to hold you accountable. 

Reward yourself each time you hit a milestone, such as paying off a small credit card bill, but stay within your budget.

Finally, don’t chase after the highest interest rate. Rates are near historic lows, and it won’t matter all that much if you put your money in a savings account, money market account or a CD. Just get going now.

Mystified by money? Ask Denisa and improve your financial literacy. Denisa Tova MBA, CFP®, CDFA is a Colorado Springs-based Certified Financial Planner and CEO of DaVinci Financial Planning. Submit financial questions to her at denisa.tova@gazette.com.