How To Safeguard Your Financial LifeSeveral Financial Planners Would Agree That One Of Theforemost And Important Steps That You Should Take Toprotect Your Financial Stability Is To Set Aside Fundsas Emergency Reserve. The Concept That You Have Thefund For Emergency And Unexpected Events Is Enough Tohelp You Stay Away From Using Your Credit Card Anddrown Yourself In Debt.How To Get StartedEveryone Must Stash A Little Extra Cash In Case Ofemergencies. However, How Much Money Should You Keep?Although The Topic Of Exactly How Much Money Is Neededfor Your Emergency Fund Is Open To Debate, The Minimumamount Should Be Enough To Cover Your Expenses Fordaily Living For At Least Three Months. It Is Alsowiser To Save For Six Months Though Most Financialplanners Agree On A Full Year Worth Of Cash.Your Personal Circumstances And What It Takes Toprovide You With A Peace Of Mind Are The Elements Tohelp You Determine Just How Cautious You Want To Be.If For Instance, You Have Well-off Parents Who Havealways Been Supportive And Willing To Help You In Afinancial Crisis, An Emergency Fund For Three Monthswill Be Sufficient. On The Other Hand, If You Hadreach For You Credit Card For Help And End Up Paying15 In Interest On The Debt, You Would Be Better Offsaving Enough Money For Your Expenses That Would Lastfor At Least Six Months.If By Any Chance You Are Thinking About Where To Placeyour Money, Emergency Fund, Paying Off The Credit Carddebt Or Funding Your 401(k), You Can Always Start Withyour Credit Card Debt. Next, You Can Contribute Toyour 401(k). This Step Is Especially Useful Since Youcan Later Borrow Money From Your 401(k). However, Assoon As All Those Are Finished, Return To Your Projectof Setting Up Your Emergency Fund.If You Do Not Feel Like You Are Required To Make Yourentire Funds This Week, You Can Start Like Everyoneelse. Begin By Setting Aside A Monthly Amount, Likefor Instance, 5 Of Your Paycheck Or Other Amount Thatallows You To Build One Month's Worth Of Livingexpenses Over The Course Of A Full Year. It Is Alsoadvisable And Helpful To Make This Automatic. You Cando This By Asking Your Bank To Do An Automatic Programfor Deduction From Your Checking Account To Yoursavings Account.Additionally, Monitor You Spending Habit Each Monthand Always Search For Areas That You Can Develop. Ifby Any Chance You Receive A Promotion, Bonuses, Orother Unexpected Windfalls, Always Think Aboutincluding Them To Your Emergency Fund.Where To Keep The CashKeep Your Emergency Fund Somewhere That Is Both Easilyaccessible And Safe Because You Might Be Required Toget The Cash In A Hurry During Emergencies. Remembernot To Put Your Cash In The Freezer But Do Not Tiethem Up Together In Stocks Whose Worth May Havedeclined By The Time You Need Them.The Best Option You Have Is To Open A Savings Accountor Money Market Account. However, Always Examine Theiroffer With Regards To The Minimum Balance, Interestrate And Other Terms.By Time You Think You Have Saved Enough, Learn How Tostop. You Can Now Sleep Easier And Try To Startplacing Your Additional Saving Into Higher-interestand Usually Less Accessible Investments Or Accounts.
