Covering an Emergency

• In 2006, the average American family had $3,800 in the bank; however, nearly 25 percent of the population had no kind of savings at all, either for emergencies or for retirement. The first step on the Crown Money Map is "Emergency Savings." At minimum, you should have $1,000 set aside in a savings account to pay for unexpected repairs or medical bills. Liz Weston, author of "The 10 Commandments of Money: Survive and Thrive in the New Economy" reports that less than 43 percent of all Americans have this amount in liquid savings.
  
  

Covering Your Monthly Bills

• Finding yourself without a job and bills that need to be paid is a sickening feeling. Having at lease six months of monthly expenses in savings is the bare minimum. Some financial advisers tell you to subtract work-related and discretionary expenses when calculating this amount; however, you should also consider that you will have to pay for things that are normally deducted from your paycheck, like health insurance. You will also have some expenses associated with finding a new job. You may need to travel to a different city, buy a new "interview suit," or invest in additional education to be qualified for a new job. Ideally, you should have enough in savings to cover your bills for one year.
  
  

In It for the Long Haul Automatically

• Saving a significant amount of money is a long-range goal. Knowing this is a long-term commitment can help you stay on track. It may be time to reevaluate your monthly expenses and set aside some of the optional expenses until you have your savings account built up. Contact your human resources department to see if you can have part of your paycheck automatically deposited into a savings account. Once you have your emergency fund established, you can start to save for larger purchases so that you won't have to rely on credit.
  
  

Starting with a Plan and Staying Accountable

• Instead of buying a software package to help you track your savings and expenses, there are free resources available like Mint.com. You can create a budget, track your expenses, and set your savings goals. It's also important to have someone you trust hold you accountable to your goals. Choose a close friend, or spouse, with whom you are willing to share your financial details. Knowing that you have to show your bank statement to someone else might make you less willing to spend the money you've pledged to save.