So the reason why the economy is in the crapper is because many people have lived above their own means. That means they are spending more than they make and just living check to check. Right now is the best time to have an emergency fund. It used to be that most money guru’s said you should have 3 months but now they are saying up to nine months. I feel that a good 6 month cushion would be a great start. Actually taking baby step it would be good to turn your budget into something realistic. How about spending one month getting it so your are not spending more money than you are bringing in.
I know some of you are probably thinking we have no extra money. In the past I have talked about little ways top pinch. Write down all of your monthly expenses. I bet you will be suprised at what you find so you can save a few extra bucks. It will add up. Go on a spending diet.