In Case of Emergency

Emergency funds.  These are the things that your parents talk to you about.  It's that rainy day account - that pocket of money to tide you through the rough patches.

Do you have one?

I actually DO have an emergency fund, and it's about two months away from hitting my goal.  Americans don't tend to be so great at saving, but with the credit and housing crash... I'd be willing to bet a lot of us have seen the value of socking money away! 

I've always been a saver, but I found that my saving became EONS more effective when I created rules for myself.  For instance:

• I always pay myself first.  My Emergency Fund saving gets treated like a bill - nonoptional.  It's also the first thing on my "Payday Bill Pay" list.  I transfer each deposit by 8a on Payday.
• I never put less than 10% of my paycheck into my Emergency Fund account, and anything leftover from the last pay period gets loaded into my fund, as well.
• My Emergency Fund is a one-way street.  Money goes IN, not OUT!  The only acceptable use of this emergency money is job loss, medical emergency, or if someone close to me passes away suddenly and I need to buy a plane ticket.  This is a very important rule!!
• Emergency Funds are not a loan office.  I made the mistake once of loaning my emergency fund money to my ex-fiance.  Notice the "ex".  Thankfully, he paid me back - but I was nervous until that money was back in my account.

Also...

• You'll often find that online accounts offer the best interest rates!  BankRate is a great resource for bank-shopping.
• A good emergency fund has at least eight months of salary in it.
• Make sure that whatever bank you are using for your Emergency Fund is FDIC insured.  Check on your bank's status at MyFDICInsurance.

Consistency is the most important thing.  I don't skip payments into my account so that I can buy a new dress.  If I ever feel the inclination to skirt my rules... I just remember that it's not a matter of IF I'm going to need this emergency money, it's WHEN.  People lose jobs, have a medical emergency - I'm going to need this money at some point!  I cannot even tell you how much peace of mind it gives me to know that if I lose my job or somehow find myself in dire straits... I won't be in crisis.  I will have backup funds to buy food and pay my rent.  Don't be fooled - emergency funds are an absolute necessity.

What about you - what are your very best tips for saving your dollars?  What did I leave out?

EXTRA CREDIT: Other Helpful Money Posts Across the Internets:

Living Within Your Means: Nodakademic

Hidden Costs to Home Ownership: FortyTwentyFour

Why Rent When You Can Buy? US Meets UK

Affordable Groceries: That Wife

Savings Schmavings! Parenthetical Me

Making Money WORK!

***FYI this blog post should not be considered financial authority.  Do your own research and do what's best for you.  AKA, it's not my fault if you do something wild and crazy with your dollars.  Don't sue me, 'kay?***

Money management can be, shall we say... EXCITING!  Especially when you have a lot going on.  For instance, I am in full-force save-o-rific mode.  My picket fence is happening within the year (hopefully) and I need the dollars to pay for that picket fence.  Hopefully with a finished basement and jacuzzi included.

I've always been decent with money, mainly because I have no shopping compulsions.  Those impulse buy kiosks loaded up with candy and soda at the checkout desk?  No problemo, mi amor.  I excel at saying no to spending money.  Sometimes it involves hightailing it out of Anthropologie before I spend my paycheck, but hey, whatever works.

Recently, I've started researching how to earn an A+ in saving money for my (hopefully) fast-approaching home o' my very own...  and I've found two resources that have helped me tremendously.  First off... I joined Mint.com.

For the last year, i struggled with Quicken.  Hated it.  Too discombobulated.  I wanted something that could bring all my accounts together into an overview that made sense.  Quicken is no good at that.  I make good financial choices, but I don't do money-speak.  I think Quicken is better for peeps who have a slightly higher level of financial sophistication.  Mint helps me see in 10 seconds where my money is going.  For instance, I saw right away that I do a great job at NOT spending too much on clothes, but...  I clearly go out to eat too much.  Most of my budget was going to restaurants, soooo now I know that's an area I need to work a bit on .

My second new resource:  My friend Suze.

My sister Tweets was Suze one year for Halloween, and I can tell you right now that she's thanking her lucky stars she doesn't have those photos uploaded to Facebook.  Otherwise... we'd all be having a laugh at her expense.  :)

I really love anything Suze does.  She's REALLY REALLY ENERGETIC!  I love her.  She has these kits that are fantastic, too.  My FICO score is A-delicious, but I have a friend that used her FICO kit with outstanding results.

When it comes to savings, I find that the MOST important rule is to be consistent - pick a savings account with a good interest rate and pay yourself first every payday.  Treat savings like a bill you need to pay.

Now you've met some of my secret weapons... what are YOUR best money tips?