Do you have an emergency fund?  Having an emergency fund is of the utmost importance if you are looking to achieve financial security.  Need to get started?  Here are some tips.

First of all, make sure that you know what the appropriate size of your emergency fund should be.  Most finance experts recommend 3-6 months of salary saved in a low-risk account.  I’d go with a larger amount of you have any concerns about job stability or income.  In this economy, targeting a larger size emergency fund is definitely the best approach.

Now that you have a goal, it’s time to start saving.  Saving for your emergency fund should be your top financial goal.  In your budget, include a line item for “paying yourself first”.  It may take a few months, or even a year, but eventually you’ll be in great financial shape!

So why do you need an emergency fund?  An emergency fund is exactly what it sounds like - a bucket of funds available to you in the case of a financial emergency.  There are many, many instances where you may need emergency funds — such as job loss, home repairs, automobile repairs, health emergencies, etc. While it may be painful and difficult to save up the right amount, it will definitely feel great when you are in a more stable financial situation!