Saving Money For A Crisis

Saving money for a crisis is essential as sadly full time employment for our entire working life is not a reality for many people these days.

Therefore you should set aside a rainy day fund as it were of ideally between three months to six months of your current salary. Therefore you will have a safety net should you become unemployed and be able to use that money to tide you over whilst you find a new job.

How to save this fund? Well best way is to try to set aside a percentage of your income each month as soon as you get paid. Set an automatic transfer into your savings if you can so that it happens without you thinking about it and just treat it as a pay cut and forget about the money that you store away.

As a rule we tend to be able to survive on what we have, the more we have the more we spend, so through tightening our belt a little on an OK salary it is quite possible to save this fund over the course of a couple of years.