| Many new over zealous investors will tie | | | | Be sure to include variable expenses |
| up almost all their liquid assets into | | | | including property taxes, insurance |
| their stock portfolios, leaving little | | | | premiums, vacations, holidays, special |
| money for those unexpected costs of life | | | | dinners out, and medical costs. Keep a |
| like car repairs, doctors bill, or an | | | | calendar just for those expenses by |
| increase in property taxes. When an | | | | predicting when these bills will be due. |
| investor over extends himself he has | | | | Take into consideration non monthly |
| very little choice but to do into his | | | | bills like homeowners association fees |
| portfolio and sell stocks at a financial | | | | you may pay twice a year for.Most |
| lost to that he has the funds available | | | | financial advisors suggests that for a |
| to afford and pay for immediate items. | | | | family of four it would be a good idea |
| Lack of cash flow can be extremely | | | | to set aside 6 months of a income into a |
| stressful. However, over extension is | | | | money market account. Six months of |
| easily avoided by the establishment | | | | income may seem like a good deal of |
| budge and of an emergency cash fund.When | | | | money and it is. It may take some penny |
| developing an investment plan, budget is | | | | pinching to do but you and your family |
| everything. Only after you know how | | | | will be better protected. Money market |
| much money you spend each month will you | | | | accounts are nice because you receive |
| be able to know how much spare money you | | | | more interest then in normal savings |
| have to place into investments. Also an | | | | account and you also have the ability to |
| honest look into your finances and debts | | | | write checks of have a debit card for |
| is always a good thing to do. Ignores | | | | it. To help with unexpected bills or if |
| financial problems always leads to an | | | | someone in the family loses their job. |
| increase in those problems. It is often | | | | Having this security is very important |
| the little items which at the end of the | | | | in how you, as an investor, can approach |
| month cost us big. Morning coffee and | | | | your stock portfolio. Knowing that you |
| lunch out can run close to $50 dollars a | | | | have money stored away may allow you to |
| day, multiple that by 30 and that is a | | | | take a bit more risk with investments, |
| significant amount of money you may have | | | | to try new leads, and turn a profit. |
| failed to include into your budget.An | | | | Financial security is extremely |
| emergency fund is a way to place money | | | | important to the future of our families |
| aside just for those unexpected | | | | and there is no greater gift then the |
| expenses. That way money is available | | | | gift of stability. It is never too |
| too you without having to sell stocks. | | | | early to start saving for retirement or |
| Buy, selling, and trading stocks all | | | | establishing education account for your |
| have a fee associated with them. | | | | future children.Visit the Global |
| Basically an emergency fund is the | | | | Investment Institute and signup for our |
| placement part of your monthly income | | | | free Investing For Beginners E-Course at |
| into a saving account or even better a | | | | webmasters or publishers, please feel |
| money market account. To determine the | | | | free to use this article provided this |
| amount of money that should be placed in | | | | reference is included and all links |
| the account take a look and make a list | | | | remain active. |
| of any irregular expenses in the past. | | | | |