The key to a good system of money management lies in spreading your big expenses and your savings so that each month bears a share of them. When you put aside $20 every month to meet a $240 yearly insurance premium, for instance, you will not risk spending that insurance money on an unnecessary luxury. . . . Include in your savings total an emergency fund equal to at least two months’ income, to cover you should you be hit by big unforeseen expenses such as illness, unexpected home repairs, moving expenses. Note: the emergency part of your savings fund should be kept in a readily accessible (“liquid”) form — for instance, a savings account. As a starter, earmark 5 per cent of your total monthly income for savings, and boost the percentage from there if you can swing it.
