CREATE AN EMERGENCY FUND

Any financial plan must include an emergency fund, insists Sue Torr of Crue Invest.

It’s there to help your household recover from setbacks and unexpected expenses such as flight tickets to visit a sick parent or the replacement of expensive car parts.

There are plenty of things that can cripple your financial situation if you don’t have at least a few thousand set aside.

Torr says an emergency fund should ideally be enough to cover three to six months of key expenses.