Are you ready with an emergency fund?

If your car broke down today or your roof sprang a leak, would you have enough money to pay for the repairs without turning to your credit card? In the unfortunate event that you lost your job, would your savings account pay the bills while you’re out of work?

If your answer is “no,” then you should probably think about getting your emergency savings fund in gear. Financial experts suggest having three to six months worth of living expenses set aside in case you find yourself facing one of life’s obstacles. The idea is to maintain a financial cushion to pay for unexpected expenses without having to rely on credit. As debt-guru Dave Ramsey put it, “You need to build up a rainy day fund, because — guess what? It’s gonna rain.”

The first step toward building your cushion is determining your household’s monthly expenses. Add up the costs of housing, transportation, groceries, utilities, credit card payments, insurance and everything else that comes calling on a monthly basis, and multiply it by at least three. That amount is the minimum you should aim to stash in your emergency fund.

According to BankRate.com, the most important element to keep in mind when starting an emergency savings fund is consistency. Determine how much you can afford to feasibly set aside each month, even if it’s as little as $15-20, and religiously put that money in a savings or money market account with a high interest rate. If you’re finding it hard to get in a routine of saving, experts advise treating your emergency savings contributions like a monthly bill. And if the initial contributions are going well, increase the amount you deposit.

Here are some other tips to make your emergency savings plan easier and more effective:

• Don’t tap into your emergency savings for anything other than emergencies. It seems simple, but your emergency fund isn’t for that late-night pizza craving or those to-die-for jeans on sale. Save it for when you really need it, like medical emergencies, disability, job loss or costly home or car repairs.
• Limit access to your emergency account. You should have relatively easy access to some, but not all, of your savings. Once you save two months worth of living expenses, BankRate suggests putting one month’s funds into a one-month Certificate of Deposit (CD), which typically gives a higher interest rate than a savings account but will incur a penalty fee if you withdraw the deposit before it matures. Once the one-month CD matures, roll the balance into another one-month CD, all while continuing to make regular deposits to your emergency savings fund. This will prevent you from spending all of your savings and allow you to earn more interest in the process.
• Don’t link your emergency fund to your checking account. One swipe of your debit card could easily wipe out your hard-earned savings if you link the two accounts. Avoid the temptation by keeping your checking and savings accounts unconnected.
• Set up automatic transfers to your emergency savings account. If you have checking and savings accounts with the same institution, Bundle.com recommends setting up automatic monthly transfers from checking to savings so you won’t spend the money you should save.

Once your emergency fund had grown to its target, keep your saving habit alive by stashing money for a wanted vacation or that new car you’ve been eyeing. Better yet, put the money in a retirement fund. There’s no limit to the amount you can save.