Emergency Fund

A good idea is to save your money and put it to the side. You should have at least 3 months worth of savings, equivalent to your take home pay, put away in a safe place. So if, God forbid, you do lose your job, then you know that you have 3 months worth of savings to live on. Then again, with the economy the way it is now and all the job shortages, I insist that you have 6 months of savings.