Emergency Fund

One of the most important things to do will be to establish an emergency fund. In my case, I will assume for $30,000 which will be my estimate on 6 months worth of expenses. Obviously, an emergency constitutes an unexpected occurrence that needs to be addressed immediately. The emergency fund will not buy gifts for holidays because I didn’t save for them. It does not constitute buying a car because I didn’t save for one. An emergency fund is just that – emergencies.