An emergency fund is a savings account set aside for unexpected expenses, such as medical bills, car repairs, or job loss. Having an emergency fund can protect you from going into debt when life’s surprises happen and provide peace of mind in uncertain times.

Financial experts recommend saving three to six months’ worth of living expenses in an emergency fund. While this may seem like a large amount, the key is to start small. Begin by setting aside a portion of your income each month, even if it’s just a small amount. Over time, these contributions will add up.

It’s important to keep your emergency fund in a separate, easily accessible savings account, so you’re not tempted to spend it. High-yield savings accounts are a good option because they offer better interest rates than regular savings accounts, helping your fund grow faster.

Building an emergency fund takes time and discipline, but it’s one of the most important steps you can take to secure your financial future.