By Janet Bodnar
From Kiplinger’s Personal Finance
Before investing in the stock market, take stock of your overall finances. For starters, you should seed an emergency fund that will eventually cover at least three to six months’ worth of your expenses. Stash that money in a safe place, such as a bank account or money market fund, where you can get your hands on it in a hurry if necessary. The same goes for money you’re saving for short-term goals, such as next year’s vacation or a down payment on a house. You don’t want to risk money that you’re going to need in fewer than five years.
