Life throws all sorts of surprises at us, especially those that we didn’t plan for or ever expect. Often these unplanned surprises aren’t ones that we have saved for. In fact, a recent study by Bankrate shows that 28 percent of all Americans do not have any emergency savings for a financial hurdle. Only 14 percent of all persons with a high school diploma as their highest education have saved for a surprise in the future, and 41 percent of all college graduates have started saving.

While financial advisors suggest that men and women have at least 6 months’ worth of living expenses saved in a separate, untouched account, only people who make more than $700,000 per year are faithful in keeping with this precaution. Those who make less than $30,000 per year are almost all void of a rainy-day account which could shield them from financial tragedies. You never know when a freak accident or a cancer diagnosis will send your finances towards medical bills, or when job loss will cause you to lose all fiscal security.

If you are worried that you don’t have the finances saved for life’s unexpected trials, then you need to start a saving’s account for this purpose right away. Bankrate says that those who have these savings accounts can often avoid debt management plans or bankruptcy. There are many people who are living paycheck to paycheck, but putting some of this money away could prove a valuable insurance for the future. The first step to building this account is to determine how much you will need. You will want to have a specific goal in mind when you start saving.

This goal will depend on your income, and the costs of living. It is best to have four to six months’ worth of expenses saved, so look at your monthly budget and use this to guide you. Don’t’ include vacations, clothing, or luxuries into your calculation, because you won’t want to spend your money on frivolous purchases if you are in an emergency. Start with a small goal, like saving $1,000, and work up from there. Next, decide where you will keep your fund. Do you want to store it in an online bank or at a credit union? You can also put the fund into savings bonds or as cash in a lock box. Regardless of your choice, you want to make sure that you distinguish your savings account from your spending and do not dip into it when you want to pay for a luxury purchase. The account needs to remain untouched except in legitimate emergencies.

One you have chosen where to store your emergency fund, treat it like a bill. Pay the fund its dues monthly, and don’t skip because you feel short on finances. Make it mandatory and you will be thankful you did when it comes time to use the cash. Now, establish your definition of emergency. Emergencies should be natural disasters, household damages, auto accidents, hospital bills, and job loss. Also, another situation that puts you in financial turmoil can be an emergency.

A new purse or a sale at Macy’s is not an emergency, so don’t compromise on your account because of your desire for a particular product. Also, remember that you need to take saving slowly. You won’t have the amount you want in a month, or even in a day, so take things slow and remember that slow and steady will get you where you need to be. If you arte faithful in saving and organizing an account for emergencies, you may be able to avoid the financial pitfalls that will cause you to rack up debt and eventually need to declare bankruptcy.