1. Emergency fund
2. Retirement fund
3. Kids college fund
4. Gotta-have fund
Just started working? Create the emergency fund. The simplest fund of all.
How much for this fund? It depends on your lifestyle really but it should be enough to cover about SIX months of your expenses. Calculate the amount all you need to live monthly, food, rent, installments, etc.
Why six? If you are out of job, that is the 'allowable' time for you to live out of your emergency fund while looking for another job.
So when you lose your job, you are able to stay calm before moving on to next pasture.