Emergencies happen.

Unfortunately, car accidents, natural disasters, and unexpected illnesses can be not so much a matter of “if” but “when.” The words “emergency” and “expensive” tend to like each other’s company. Given that, one of the best way to prepare—or really, to brace yourself—is to make sure you’ve got enough cash, or credit, to get through things.

According to a survey by the Consumer Federation of America, only 40% of Americans have an emergency fund . Not good. And, if you count yourself among the many living from paycheck to paycheck,that means you’re potentially one crisis away from not being able to pay your everyday bills. Don’t be among that 60% who put their lifestyles in jeopardy because of improper planning; make an emergency fund part of the foundation when setting your financial goals.

How Much to Put Away:

While experts disagree on the exact amount, and individual needs vary, a popular method is to tally your expenses for one month and multiply that by three. This way, in the event of an unexpected layoff or hospitalization, you’ll have at least a three-month cushion to live off of during that time. But there’s no need to stop there—if you can do it, save at least six months’ worth of living expenses toward your emergency fund. With the economy arguably headed into a recession—if we’re not already there—it can’t hurt to have more money stored away in case it becomes more difficult to make money.

Squeezing Extra Money From Your Budget:

It’s never too late to start saving for any reason, and there are simple ways to cut your spending by making smart financial decisions. Look for holes in your budget, little perks you don’t absolutely need, like premium cable channels, daily specialty coffee drinks, or expensive dinners each weekend. Add up what you spend on those items each month and commit to saving that amount. If you’re worried about feeling deprived, consider this your first lesson in living better on less and consider it an investment in your financial security. Plan for an occasional treat or only give up those perks until your emergency fund is established. If you get a raise during this time, put that extra money toward your emergency fund via direct deposit--you won’t even miss it.

Where Should You Park Your Emergency Fund:

For a short-term goal like an emergency fund, you’ll want your money both safe and liquid for easy access when needed. You’ll also want to use a savings vehicle that allows you to get big results from smaller amounts. Here are some of the best ways to stash your emergency cash:

Use When Needed:

Building a sizeable emergency fund takes time and sacrifice, and given all the prudent expert advice to save instead of spend, it can be difficult to part with that hard-earned stash. Do it anyway, and pat yourself on the back for smart financial planning.

By being aware that emergencies like failed transmissions happen and treating your emergency fund like any other necessary bill, you’ll protect yourself and your assets from financial disaster when disaster strikes. (And, no, not having the new pair of Tory Burch boots doesn’t qualify as disaster.)