Create a robust emergency fund
An emergency fund will ensure that you have adequate money set aside to meet unforeseen expenses, such as hospital bills, car repairs, or rent if you lose your job. An ideal emergency fund would cover around three to six months’ worth of living costs.
Consider putting away about 15 percent to 20 percent of every monthly paycheck to build this fund. Once you believe you have created a solid emergency fund, do not stop. Keep the goal to maintain the savings rate, money which can be funneled towards other long-term financial goals.
