When it comes to money, most of us know that we need a safety net in case of emergency but we do not know how we can create this.  With that said, here are some ideas to help you develop that safety net (in case you aren’t sure how much, it should be equivalent to at least three months of expenses but having six months worth is better).

Pay Yourself First – One of the best things you can do for yourself financially is pay yourself first.  This means, when you get paid, take some of that income and put it directly into savings.  This can be a retirement fund, a savings account, something.  How you handle the money is up to you.  I have an investment it goes into directly, I have a co-worker who gives his money to his dad to hold onto.  The important element is actually doing it.

Find Extra Money – And I don’t mean going around and picking up pennies from the street, but that is an option.  You could deliver newspapers for a while; do odd jobs around the neighbourhood like shovelling snow or raking leaves or maybe running errands for the elderly.  With a little bit of creatively, you likely can find something to do with little cost but big financial rewards.  Sock this money away into the savings account and do not touch it.

Cut Down – Chances are you have items in your life that you could cut out – cable, high speed internet.  Go through those things you pay for monthly and see what you no longer need and cancel them.