Financial experts talk quite a bit about the importance of emergency funds, but does your family have one? If you aren’t sure what an emergency fund is, how to use it, or why you need one, read on!

An emergency fund is a bucket of savings that you have available to you at a moments notice for an emergency. Note that I said “emergency”. The following items are just a few examples of emergencies:

• Medical bills
• Household repairs (plumbing, heating, etc)
• Automobile repairs
• Household expenses if you lose your job or some of your income

Here are some items that, as appealing as they are, should not be considered emergencies:

• Vacations
• New TVs (even if your team is playing in the Super Bowl )
• Tuition bills (unless you’ve recently lost your job)

Many financial experts claim that you should have about 3-6 months salary stashed away. You can determine your own needs by looking at the stability of your income stream and the potential need for emergency funds, but 3-6 months is a good range to strive for.

If you are starting from scratch, 3-6 months salary probably seems daunting. I’d recommend saving even just a little bit each month, until you reach your goal. Cutting back on expenses as much as possible could help you find some additional cash to save.

Financial experts also recommend that you put this money somewhere where you can access it quickly (but not too quickly). I’d try not to put it in your primary checking account, as the desire to use it may become too difficult to overcome!

When you do need the money (and, of course, at some point, you will), your first goal after getting back on your feet should be to replace the funds.

Most importantly – please don’t get discouraged. Every little bit you can save is better than nothing, and having the extra emergency cushion will make you feel so much better! You’ll feel much more financially secure when an inevitable emergency strikes. Good luck!

Head on over to the forum to share your savings ideas!