SmartyPig®

Rethinking finances. We're all doing it. Scrimping here and saving there. As tens of thousands of jobs are being cut each week (http://swampland.blogs.time.com/2009/02/06/how-bad-is-it/) and the jobless rate rising at levels not seen in years, being prepared financially is one of the most important and best things you can do for yourself. 

A few weeks ago I referenced this article (http://today.msnbc.msn.com/id/28436623/) from MSNBC, which suggests you "Save for one month's expenses. Put 10% of your take-home pay into an interest-bearing savings account. Plan to have saved at least one month's worth of expenses - or better yet, one month's salary - by the end of the year. Have at least 10% of your paycheck directly deposited to savings, the rest to checking to cover monthly bills. If you can't do direct deposit, have the money automatically taken out of your checking account every month on payday... Ideally, to have a really comfortable cushion, you'll need to save at least three to six months' worth of income."

Start by setting aside money from each paycheck and placing it in a SmartyPig 'Emergency Fund' goal, only accessing it in the case of just that, an emergency. Start at your own pace. Figure the percentage of salary or paycheck you want to save each month, the total amount and when you want to save it by. SmartyPig will figure out your monthly contribution, which will go directly towards your emergency funds. Once you've met that goal and are sitting on a comfortable cushion, you're funds will still be earning a competitive APY until you're ready to use them. And if an emergency does occur, you're able to stop or close your goal an access your funds at any time.

Being prepared, especially in 2009 is imperative. We all hope that circumstances like this won't happen and it's time to have a nest egg, not just a nest.