3 Steps to Savings Security

Everyone should have an emergency fund of three to six months worth of mandatory expenses set aside - just in case; just in case you lose your job, just in case you get sick, or just in case your husband calls you up out of the blue and says "I quit."

Building up that kind of fund will not happen as quickly as most of us would like (unless you have a rich relative or win the lottery). It will also not happen if you continue to put off your savings until . . . the kids are out of the house, the credit cards are paid off, or the mortgage is paid in full. It will really not happen at all if you use that fund to pay for new tires, or medical expenses, or other small items along the way. The emergency fund has to become a priority habit and has to remain off limits.

1. Put aside money at the first of each pay check. Most people wait until all the bills are paid and miscellaneous is spent before they try to save. Consider the emergency fund paying yourself and do that before you do anything else.

2. Cut all unnecessary expenses. If the money is tight then it is time to cut. Don't get the sports package on cable. Even better, don't get cable. Use your time to do something more constructive.

3. Get another job. Maybe your neighbors could use some one to mow their lawn or rake their leaves. Any where you can pick up a few extra bucks - and tag this money for the emergency fund and nothing else.

It takes more than money to build up an emergency fund. You have to form the habit of savings. These three steps will get you well on your way. The important thing is not how much you set aside (especially in the beginning) but that you train yourself to make savings a priority in your finances.