One of the very first financial goals a young person should set is to begin building reserves. Reserves, often referred to as an “Emergency Fund,” will be your safety net or cushion as you embrace your own financial independence.

A good rule of thumb is to work towards saving 3 months of your total expenses in a readily accessible financial account. Add up your total monthly expenses, including rent, utilities, basic food costs, car payments, school loan payments, credit card bills and any other bills that occur on a monthly basis. Multiply your total number by 3, and the result should be your goal savings number.