Baby Step 3

Baby Step 3 is to put three to six months of expenses in a savings account, or liquid account of some kind that you can have easy access to. This is essential to being able to have financial support if any kind of emergency comes along.

There are a lot of instances where you might need some saved up money to pay off emergency expenses. For example, the economy is pretty bad right now and there are several people who are unemployed. Having liquid savings that you can dip into could be a huge help to a lot of those people.

Instead of getting into credit card debt for situations like this, having a good chunk of money could be a real benefit.