Building Emergency Reserves

There is an old saying that says you should really save up for a rainy day. If you ever doubted the accuracy of this cliché, a mere glance at the current real estate market should provide plenty of evidence it is more than appropriate. Far to many people have been living on the edge. When the edge moved, they were in a really bad situation. Owning a home is a very smart move, but only if it doesn’t wreck your financial situation. Don’t buy beyond what you can afford. Buy something you can comfortably make payments on and set aside an emergency fund as well. After a few years, you can sell your home and use the equity to move up to something else, so be patient and always make sure you have money on hand in case any disaster happens. You’ll be glad you did.