How to Build an Emergency Fund

An emergency fund is a crucial financial safety net that protects against unexpected expenses like medical bills, car repairs, or job loss. Financial experts recommend saving at least three to six months’ worth of living expenses in an easily accessible account. The best way to build an emergency fund is by setting aside a portion of each paycheck, cutting unnecessary expenses, and automating savings. A well-funded emergency account prevents reliance on high-interest loans or credit cards during financial crises.