EMERGENCY FUND MYTHS BUSTED: How much you really need to put away?

Three to six months' worth of expenses set aside in an emergency fund? Yeahhhh, right. More like three to six weeks' worth ........sound familiar???? An emergency fund is a stockpile of enough money to pay for up to a half year's worth of living expenses - helps prepare for life's disasters, such as losing a job or becoming too sick to work for a while. Yet for many of us saving that much money seems as daunting as learning how to whip up a 'perfect' souffle. After paying the bills and saving for retirement, who has that much extra money to save at the end of the month???? THE TRICK IS TO LOWER DOWN ON YOUR BILLS (spend less and don't pick up too many utilities- BUDGET on your broadband).

Lower on the totem pole. Here's something to consider before building a small fortune in liquid assets: emergency funds are not as important as saving for retirement and getting out of debt. That's because it makes no financial sense to pay 22 percent interest on credit card debt while your emergency fund which will probably be socked away in a money market account or high interest savings account, earns a measly 1.5 percent. And don't forget the MAGIC of COMPOUND INTEREST. The only time saving for an emergency fund should trump all is if you see a pink slip in  your future at work (customer foil - able to keep up the routine work of saving).

GRACE. Whenever you go shopping, or set out to buy something that you wanted, give yourself TIME to think of how to compensate. Give yourself TIME to sort your mind out whether you really are going to buy it. Or save it for Christmas. Somebody you love might buy it for you. Do yourself justice - just in case I fall sick, my mother is going to take care of me, so treat your mother "well"!!!!

Don't leave your LOVED ONES. Stay with them through the age of time. They will see you through, they will help you through. When you fall down, your mother is the first person to lift you up, don't let your spirit take you away from the one who truly loves you. Don't fall prey easily to salesmen, advertisements, commercials, etc......Don't be somebody who can be easily get carried away. Talk it out or negotiate.

Saving doesn't count. It's by giving that we will finally be able to receive. Give to the RIGHT PERSON. Don't be fooled by overzealous people. Time will bring change.