There are many different views on what is the best way to manage your personal finances. While financial experts may not agree on all points, there is one area where everyone is in agreement. Having an emergency fund is necessary to avoid financial disaster when you face a financial emergency. Emergencies can come in many forms from needing major home repairs or dealing with the loss of a job. Despite the fact that virtually every American knows they should have an emergency fund the sad reality is millions of households across the nation do not have this financial backup should disaster strike. Without an emergency fund it is almost impossible to manage a financial emergency without going into debt. Here we look at how you can get your emergency fund started today.

• Commit to the process- There are many reasons why people don’t have an emergency fund with the main cause being lack of money. It is true that many households are struggling just to get by and have no resources remaining to fund a savings account, however in all but the most extreme hardships there are ways to find extra cash to start socking away for an emergency. Before doing so you must make up your mind to put every effort into building the fund and commit to the process.

• Getting started- Once you have decided you will put forth an honest effort in building your emergency fund you must then decide where to store your money. Experts offer varying advice on this point and the best thing will be what works for you. Many people opt for a savings account where they already bank, while others prefer to separate their money by opening an online account or an account at a separate bank. It is preferable to set up a direct deposit system where money can be automatically transfered from your paycheck or other bank accounts. This makes depositing cash much easier making it more likely you will stick to your plan.

• Determining how much you will need- Again, advice varies but the general consensus is to aim for three months salary in your emergency fund. This will help offset expenses should you find yourself laid off of work or get you through a minor financial emergency. While it is ideal to have an end goal, the key is really getting started and consistently contributing money. How much you can afford to contribute is really determined by your current financial situation. Once you get farther along in the process and close to your goal you can then consider where to place money for long term investments.

• Accessibility- You will want to have access to your cash in the short term, however you might want to limit that accessibility if you feel you lack the discipline to leave the money alone. An emergency fund is there for true emergencies not an impulse purchase or rainy day fund. By limiting immediate access you reduce the chances of tapping into the account for non-emergency reasons while ensuring you can get the cash within a few days if needed.

Starting an emergency fund is especially important for those who have recently paid off debt or are trying to get their personal finances in order. By committing to the process and contributing on a regular basis you may be surprised how quickly your emergency fund will grow. Having a well padded emergency fund will ensure you have the means to take care of yourself and family should you find yourself in need of immediate cash.