save money for rainy days

Money in the mattressOf all the variables in life, job loss may be one of the most disconcerting because the bills just keep coming. In this case, being prepared means having money you can access immediately--and lots of it. Financial experts say you should carry three to six months (more, if you're self-employed) worth of bare bones living expense money in some liquid form, like in a savings or money market account. (We carry an ultra-cautious ten-month supply of cash in the bank, though I never imagined that I'd use the entire thing for major home repairs.) The three-to-six month rule of thumb assumes it'll take about that long to find a new job. But really, who knows? It could take a week or six years.Some layoffs come with a severance package, but it's best to assume you'll get nothing. Taking steps now will give you peace of mind--and some financial wiggle room in the event of job loss.