We all know this: everyone should have some sort of savings account or an emergency fund. After all, we never really know what can happen in the future, and having a stash that can be used in case of emergency is always a useful thing. However, knowing it and actually putting it into practice are two very different things. If you do not have an emergency fund, there is no reason to dillydally. Here’s how to get started.

First, set goals. That is, how much should you have in your fund? Think about minimum amounts – you can always put away more when you get extra money. The important thing is that you will have peace of mind if you have a certain amount ready to be used for emergencies.

Some things that you should consider when determining this amount are:

• How many people work in your family? Each one can contribute a certain sum on a regular basis, thus increasing the minimum.
• How secure is your job (and the jobs of the other earners in your household)? The better the job security, the lower you can set the minimum amount.
• Do you have other sources of income? If you only have one job, then you might want to make sure that your emergency fund is healthier than average.

Once you’ve determined your goals, it is time to start setting aside money. It’s as simple as that. Some things to bear in mind:

• Set up a dedicated account.
• Start small. Don’t set unrealistic goals. Start small if you have to, but make sure you stick to your plan.
• Make sure that you define what an “emergency” is. This way, you don’t dip into the account unnecessarily.