Create An Emergency Fund
Studies show that an incredible 43 percent of households in the U.S. are living paycheck to paycheck with less than $100 in liquid assets on hand at any time. That is according to SMR Research that has studied detailed income, debt and asset statistics gathered by the Census Bureau.
Also of some concern, researchers have found that only one in three American households has saved enough money to get through even a short stint of unemployment. Considering how volatile the weather is and how unpredictable the economy is that is just begging for trouble. There would be no way to pay your mortgage, credit cards, child support and other necessities if you lost your job as you had not bothered to save up a contingency fund for emergencies.
Of course saving is not easy if you are already deep in debt a trying to improve your credit card score. This is because saving might not be your first priority as you try to pay everything off. However to be on the safe side try to keep at least $1000 handy in emergency cash in case you lose your job.
You would also be wise to keep this emergency fund somewhere accessible and safe such as a savings account or a money market mutual fund. Another safe place for it is a retirement fund.