Page 70 - Book2E

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As reported by the Consumer Federation of America in a news release dated April 27, 2005, the results of a nationwide survey indicated that a lack of personal savings to cover periodic emergency expenditures was a principal cause of financial worry among women, especially younger women. This has resulted in sleep and job productivity loss as well as deteriorating health. The survey found that 42% of all women surveyed said they had emergency savings of less than $500. What’s more, 55% of women between the ages of 25 and 34 said they did not maintain an emergency savings account of at least $500.
• Your emergency fund should contain three months’ worth
of living expenses. The amount does not have to equal three months’ worth of your salary, but only what you need to pay the rent or mortgage, repay debt, buy food, and make the car payment.
• Set up a basic record-keeping system using a personal finance program such as Microsoft Money, Quicken, or other similar programs. You will find a sample budget form on page 9.
• Place your emergency money in a “highly liquid” or easily accessible account, such as a savings account at a bank or credit
Saving for Major Purchases