An emergency fund is an essential part of a solid financial plan, providing you with a safety net during life’s unexpected challenges—whether it’s a job loss, medical emergency, or urgent home repair. It ensures you won’t have to rely on credit cards or loans to cover unexpected costs, preventing you from falling into debt. To build an emergency fund, start by setting a target of 3–6 months’ worth of living expenses. Begin saving a small, manageable amount each month, and gradually increase it as your income grows. Automating your savings and keeping the fund in a liquid, easily accessible account will make it even easier to stay on track.