Its all about saving.

In these tough times I know it may seem difficult to save. There is a distinct difference between saving and investing. Even though they both involve putting aside money they each have  different roles in your financial portfolio. There is an old saying "cash is king" this can often prove to be true as savings can allow an individual to have funds available when its needed most. Savings can even fund investment at times.

What exactly is savings?
  Savings is the process of putting away hard cash in a liquid safe account that can be accessible within a short space of time. Its best to have both medium term and short term savings. Short term would usually be within 1-12 months with distinct goals such as house and car insurance premium payment, school fees or even playing mas. These accounts usually carry low interest rates and no monthly charges. Medium term savings offer higher returns but most companies attach withdrawal fees and charges to deter withdrawals before time.
Let's be honest unless you foresee significant injections of cash in your future , the financial problems that you face today will probably exist five years from now. Consider having a portfolio with both short and medium savings as it will provide cash that is needed now and also provide an injection of funds over a five year period.

A good savings goal to consider is to accumulate sufficient cash to cover all your personal expenses including mortgage , loans, utilities, food and insurance cost for at least six months. That way if you lose your job at least you will have sufficient funds to adjust your lifestyle.