#1: Stock Up On Emergency Funds

Remember how Aunt Mary kept a wad of cash in her dainty little sugar bowl? (She was smart ? that Aunt Mary.)

You never know when you'll find yourself in a tight spot ... so rather than dipping into your regular savings account (or, worse, having to BORROW funds from a bank line of credit or credit cards), start an "emergency fund."

Just be sure to add a pre-set amount to it every month. You'll probably need to make sacrifices in order to do so, but don't worry — it'll be worth it!

Shoot for a fund that would cover three to six months' worth of living expenses. That way you'll be well-prepared for a sudden case of unemployment or other financial catastrophe!

More money-saving tips:
Money Tips: Save or Invest?
Cell Phone Sticker Shock?

Next: #2: Cut Credit Card Spending