Unexpected expenses come in all shapes and sizes. Cars run red lights, bones break, pricey appliances get old,  and mother nature doesn’t care much for your house. Yet they all share similarities in that they are consistently unpredictable, and can put a sizable dent in your check book.

However frustrating and unfortunate an unplanned expense may be, it doesn’t have to be financially crippling.  You can’t avoid the inevitable, but with some effort and planning, it’s possible to safeguard yourself from a major financial setback.

If you’re a recent graduate paying off debts, caring for a family of five, or living in an expensive city, you can build a solid foundation for financial peace of mind, regardless of the situation. It’s a step-by-step process that begins with an emergency savings fund.

What Is an Emergency Savings Fund, and Why Do You Need One?

An emergency savings fund is exactly what it sounds like – money that has been set aside to help pay unplanned, urgent expenses. With it, you can cover some or all of the bills you may face on that proverbial “rainy day.”

The value of an emergency savings account goes beyond the immediate financial relief – it also minimizes the chanes of having to borrow. It’s a financial buffer that can keep you afloat in a time of need, without having to rely on credit cards or high-interest loans. This is especially important if you already have debts, since one of the best ways to get out of debt is to avoid going further into debt.

How Much Should You Aim to Save?

For most people, financial experts generally recommend building up a cash fund equal to three to six months of expenses. If you are paying off debt, that takes precedence, so start with a “starter emergency fund” of $1,000.

The more stable your income and household are, less is needed in an emergency fund. If you’re part of a two-income household, or have had a steady job for several years, a three-month emergency fund should suffice. But if you’re a one-income family, self-employed or if you have medical expenses tied to a chronic condition, consider building a fund that will cover you for at least six months.

Where Should You Keep Your Emergency Savings?

The best place to store your emergency fund is in a high-interest account that’s safe and liquid:

• High-yield savings account
• Money-market account
• Certificate of deposit/Time deposit

These accounts maintain access to your funds, while maximizing the interest they are accruing. If you’re going to save money, you might as well make some money while you’re at it.

8 Great Ways to Start Building Your Emergency Savings Account

The less you have to think about saving money, the easier it will be. So, look for ways to save that are automatic, involve small amounts you’ll barely miss or come with other benefits.

1. Save your tax refund. Expecting a refund? Instead of spending it the second it hits your account, refunds are an easy boost to your emergency stash.
2. Set up automatic transfers from your paycheck. You won’t miss what you never see.
3. Keep the change. Old school saving still works. When you get $1 and $5 bills after breaking a $20, drop some in a jar at home. When the jar fills up, move it into your savings account.
4. Check out a saving apps. If you don’t carry cash, try a savings app that automatically transfers your digital “loose change” into a savings account.
5. Work it. Wait tables, build furniture or make crafts to sell on the web, teach piano lessons, or tutor. If you have the time, get a second job or find a side hustle. Then allocate all of those funds to savings. There are endless ways to make money working on your own schedule.
6. Tidy up your checking account. If there’s money left at the end of a pay period, move some into your emergency fund.
7. If it doesn’t give you joy, sell it. With a garage sale, eBay, OfferUp or Craigslist, you can sell things you don’t need and declutter your closet at the same time.
8. Just say no. Trim expenses everywhere you can. Set a limit on eating out (or ordering in), cut back on shopping and entertainment, and look for ways save around the house. Every penny adds up, and will pay off in the long run.

When you set up an emergency savings account, you’re giving yourself the chance to build greater peace of mind about the future. And that’s priceless.