Create a contingency fund: According to personal finance professionals, you should create an emergency fund that will have you covered for at least six months of daily living costs.
In the event of an unexpected financial contingency, such as loss of job or a major car repair bill, you can dip into your fund rather than having to rely on expensive personal loans or credit cards. Large contingency funds appear intimidating at the outset, but you will soon get there in small, consistent steps.
