If we have learned anything from the recent economic recession it is that our money is not safe. We can work hard and save even harder just to see it all wiped away in what feels like the blink of an eye. It is important that we learn from what we have recently gone through in this decline so we do not let the economy get the best of us again in the future.

In the past several years many banks failed, even well known names that were too big to fail have gone under. Depositors lost almost $245 million. These banks failed because they made careless investments with depositor’s money and exceeded the $100,000 limit of the Federal Deposit Insurance Corporation (FDIC).

Normally someone would not even think about withdrawing money from their 401(k). But, with today’s economy, money is tight. If there is an emergency situation where you need money right then, where do you turn? I’m not going to lie, accessing funds from your 401(k) for anything other than retirement is not an easy task. It’s even harder if you are still employed by the company that provides your 401(k). You still do, however, have two options. Option number one is loans.

At one point or another someday we will all retire. At least we hope we will. If you want to ensure that you have a happy and stress free retirement it is essential to start saving right away! With the magic of compound interest on your side, the earlier you begin to store away your loose change and extra cash, the more money your money will be making for you when you eventually get to those golden years.

The financial experts echo words of having an emergency savings of at least 6 months of take home pay, and most analysts believe that one year is preferable. When unexpected expenditures occur from time to time, the money can be spent in the blink of an eye to replace the van that finally blew a gasket, or shovel the sewage that backed up in the house and ruined most of the contents, floors, and walls. Insurance adjustors are quick to say that these types of disasters are not typically covered with homeowners insurance, and the repairs will be out of pocket expenses for the owners. Once again, the emergency savings has been put to good use with the purchase of a reliable automobile or the refurbished home after the untimely sewage eruption. Now begins the tedious process of rebuilding a sizable emergency fund for the next disaster that may be lurking.