An emergency fund can be a financial safety net

Maybe your car broke down, your computer was stolen, or you had a surprise visit to urgent care. Emergencies are inevitable, but you can prepare to deal with them by building an emergency fund.

- BY ADRIANA MORGA

THE COST of a car repair, such as replacing this battery, could be covered with an emergency fund. Starting small could help build a fund.

(RONALDO BOLA Los Angeles Times)

"There are so many things that happen in our lives that we don't expect, and most of them require financial means to overcome," said Miklos Ringbauer, a certified public accountant.

The industry standard is to save three to six months of expenses in an emergency fund. However, this can feel daunting if you live paycheck to paycheck or if you have debt. But if you're in either of these situations, it's even more crucial to build a financial safety net that can help you in times of crisis.

"Emergency funds allow you to prevent further debt," said Jaime Eckels, certified financial planner and wealth management leader for Plante Moran Financial Advisors.

Suppose you're paying multiple credit cards and other loans. In that case, Rachel Lawrence, head of advice and planning for Monarch Money, a financial planning and budgeting app, recommends that you make the minimum payments while you build your emergency fund. Once you've hit an amount that feels right for your lifestyle, you can go back and continue tackling your debt more aggressively.

Whether you want to start an emergency fund or create better habits while you save, here are some expert recommendations:

Start with small goals

The idea of saving for three to six months' worth of expenses can be daunting, so it's best to start with a smaller milestone.

Lawrence recommends starting with a goal of saving $1,000, then moving on to save one, three, and six months of expenses.