 TITLE: How Much Should You Save Each Month? CONTENT: Why You Need an Emergency Fund\n------------------------------\nAn emergency fund is there for life's unexpected events. If you suddenly lose your job, it helps to have a few months' worth of expenses covered in a savings account so you don't have to worry about your ability to pay your bills while you look for work. If you get sick, an emergency savings fund can help you cover out-of-pocket expenses without taking on debt. If your car's transmission dies and you have to replace it, having an emergency fund could make that situation a bit less painful.\nYour emergency fund can give you the space to think through a difficult financial situation and make smart long-term decisions, since you'll be less panicked about how to afford a given expense.\nThe rule of thumb with emergency funds is to set enough aside to cover three to six months of expenses. You can build the emergency fund over time by putting a portion of your income into it each month.\nYou can calculate your emergency fund goal by adding up all of your essential monthly expenses, including:\n*   Rent or mortgage payments\n*   Utilities payments\n*   Groceries\n*   Gas or public transportation expenses\n*   Monthly minimum debt payments\nBe sure to add any other essentials you pay for on a recurring basis, such as medical prescriptions or other non-negotiables, like your car registration. Once you've tallied those costs, multiply them by three or six to get your emergency savings target.\nAgain, try not to be discouraged by the total number. Work toward your overall goal incrementally rather than stressing about fully funding it right away. If you come into a sudden windfall, such as a bonus or big commission at work, consider putting that into your emergency fund to speed up the funding process. When you withdraw money for emergency expenses, make a plan to replenish the fund once your finances are stable again. END