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Get your financial life in order with these tips

New Delhi, June 10: Does thinking or talking about money matters makes you extremely worried? If yes, then you need to make some real financial decisions. Thoughts related to worries about the money can easily

India TV News Desk Published : Jun 10, 2013 13:54 IST, Updated : Jun 11, 2013 9:31 IST

7. Build an emergency fund




Having an emergency fund has become a necessity nowadays. An emergency fund is a great tool to deal with the unexpected. Financial emergencies can come in the form of a job loss, significant medical expenses, home or auto repairs or something you've never dreamed of. For this you need to prepare an emergency fund with some extra amount of money that will cover those extra expenses. This begs the question: how big should my emergency fund be? Or, if you're like me, what's the minimum cash reserve I need to build up?

Most experts agree that you should keep between three and six months worth of your living expenses set aside in your emergency fund. Depending on your specific situation and whether or not you have children, carry substantial debt and types of insurance coverage will determine what amount is best for you. The best way to get started would probably be through your bank. Open up a new savings account if you currently don't have one and begin to save with this first. The next step is to get into the habit of making regular deposits into this account.

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