Many people save money in order to attain certain goals. Some of the most widely accepted reasons to save money include: having extra money in order to invest regularly; accumulating money in case of an emergency (usually three to six months of living expenses in the form of cash); deferring on paying taxes by using before-tax income and employer matching funds (in an IRA, 401(k) or other retirement account); putting away money in order to purchase a principal residence; saving for vacations, to purchase cars, or unexpected medical expenses; and to fund your current or future educational expenses. Before you begin investing, you should have your emergency funds set aside, and should exclude these sums from what you will ultimately use for your investments.