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Sufficient savings

means the amount of readily accessible money or credit that

you would need in case of an unforeseen emergency. This money, usually three to

six months' worth of expenses, should be kept in an easily accessible account, and

collecting it should precede any investments.

If you don't currently have sufficient savings for an emergency fund, forget about investing for

right now. Your first priority is to amass your safety net by beginning to put away some

amount into this fund regularly. In addition, any unexpected windfalls should also go di-rectly

into this fund.

If you have not previously had a fund of this type, it may be tempting to use that money as it

starts to grow. By raiding your fund, however, you are only further postponing the time when

you will be able to invest. You must have sufficient savings before investing. The importance

of this fund cannot be stressed enough. It is, without a doubt, more important than the ability

to invest.