Tip 11. Have an emergency fund - Money Saving Tips And Secrets

Set aside 3-6 months of household expenses.


With so many people loosing jobs and the risk of double-dip recession being high, setting aside 3 to 6 months emergency fund should be one of the main priorities. Most personal finance books agree: this is the first thing you should do - after meeting basic needs, and while reducing spending.

An emergency fund is an easily accessible cash, for use only in case of emergency. It is not to be used to buy a new car. It is not to be used to buy a new iPhone. It is not to be used to remodel your bathroom. It is for use only in case of emergency.

You could put this money into one of the FDIC insured high interest online savings accounts and let it accumulate interest.
 
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