Personal finance tips: Rules for emergency funds, and more

Three top pieces of financial advice — from negotiating a debt settlement to countering cash buyers

Saving money
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Rules for emergency funds

Start building up your emergency fund, said Christine DiGangi on Credit.com. "It may not be the most fun budget category," but emergency funds are an essential part of personal finance. First off, define "emergency." The answer "may not be the same for everyone," but one rule of thumb is to maintain separate accounts for "income emergencies," such as job loss, and "expense emergencies," like paying for unexpected repairs. Financial planners suggest stashing the cash in a dedicated savings account to avoid the temptation of simply writing a check, but "if you don't like the idea of letting money sit in a savings account," you might consider a CD or a Roth IRA. Be wary of early withdrawal fees, but the higher yields will be a nice bonus if you don't have an emergency after all.

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Sergio Hernandez is business editor of The Week's print edition. He has previously worked for The DailyProPublica, the Village Voice, and Gawker.