Hello and

welcome to Money Girls Quick and Dirty Tips for a richer life.

I'm Laura Adams. I'm Laura Adams. This episode is for new graduates or anyone who needs some real world

financial tips. Do you ever reflect back to an earlier time in your life and think,

I wish I knew then what I know now?

One of the reasons I love doing this podcast and teaching people about

personal finances is to help them get started on the right

financial path as early as possible. Are there some lessons I wish I had learned

sooner rather than later when it comes to personal finances? You bet. I'll share five

tips that can help anyone get a leg up on their financial future. The most

basic and important rule for personal finances is to be prepared for the unknown.

And you know there's plenty of that in today's turbulent economy.

So no matter how much money you start earning, tip number one is to quickly build an emergency fund.

Think of an emergency fund as your investment in yourself.

It's how you'll stay calm and cool in the face of a potential crisis, like a broken down car, an unexpected

medical bill, or a job layoff, for example.

Once you start building a cash reserve, be disciplined with it. Never take money out for anything other than real,

let me repeat real emergencies.

Consider saving anywhere from 5 to 10 percent of your income for your emergency fund.

You should keep it in a safe place, such as a savings account at an FDIC insured institution.

I recommend that you save enough to cover a minimum of three to six months worth of living expenses.

Some higher yield savings accounts and money market deposit accounts will require minimum balances.

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