Your First Steps to Start Saving: The Emergency Fund

For financial security, you must first have financial stability, this is achieved with an Emergency Fund, which I call primary savings. This pot of savings, as its name suggests, is for "emergencies? and put it in quotes because many people think that buying a new iPhone 3G, or holiday "due to excessive stress? to Aruba are emergencies, as our friend says JD Slowly Get Rich, there are people that have shown cases of emergency or financial hardship.

I particularly have seen other cases, such as during the national strike of 2002-2003, I needed to buy a new battery for my car and pulled it out of my emergency fund.

There is much discussion about the size of the fund, some say they should be on a salary, others say $ 1000, others say it should be three salaries to pay mortgages, insurance, car share, etc. Still others argue that a radical and does not need a primary savings fund for emergencies, but I think it's very extreme.

In my opinion many people have not even thought about this emergency fund and would be very difficult to save from one day to three months' pay for "emergencies?, My methodology is as follows:

- The emergency fund should be enough to fix something (a refrigerator, car, a door) or to pay a medical emergency (fractures, accidents), or a family (food, loss of a loved one) .- If we give this meaning the fund, a salary saved in a bank would be enough, and we can create this fund saving for the three months to manage to have your emergency fund .- From the fourth month, continue to commit a small portion of our salary to this fund, in my case is 5%, which is the monthly payment to my emergency fund .- We must put this emergency fund in a separate account to avoid temptation, and also recommend you ask for the account without a debit card.

How to start this fund? First of all, you should pay all the debts of your month (car, mortgage, school, services) and then remove some of your unnecessary expenses (trips to the movies, dinner with friends, rent games, gym membership).

If you think you have spent your entire salary at the beginning of the month ... think again!, Review your finances and see that there is money to be available for the primary savings. If it is still impossible, you can have the option to open a line of credit with your bank confidence, telling you how much sincerity it is for an "emergency fund? ... You can print and bring this article to know what it is.

Now, one month, three months, $ 100, actually, the beginning of the emergency fund depends only on you, and you're the best person to know how much you can start without seriously affecting your personal finances.

Summary: Creates the Fund will serve as a source Emergenciaque saving primario.Abre a savings account that is not easy to access, no debit card and put the money there.

Start saving money as you can of your unnecessary expenses until you manage to have a month's salary.

From there, begins to deposit 5% of your monthly salary in this fondo.Disfruta of the first phase of your financial security.

This just goes beginning, we still have a long way to go. Have us to have the will and determination, and I hope that everyone can achieve financial security we deserve.