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Do you have an emergency savings fund?

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An emergency fund is a stash of cash set aside for those unexpected expenses that pop up when life happens—whether it's car trouble, a large appliance repair, job loss, or a medical need. If you have an emergency fund set aside, you'll find it easier to pay for those sudden and often urgent bills.

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Without an emergency fund, there's a good chance you'll find yourself relying on credit card debt or some other high-interest loan. Even a fairly minor expense can end up snowballing into major debt if you can't afford to pay it off right away, which makes it even harder to cover future expenses.

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You can think of an emergency fund a bit like an insurance policy: you pay into it over time, then withdraw what you need when the unexpected happens. You'll want to keep your emergency savings in an account that's separate from your checking account to make it harder to accidentally dip into the funds. The best option is an interest-bearing savings account that's federally insured. That way, the money is safe and growing, but you can still access it when needed.

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And don't forget—if you need to draw on your savings, you'll want to replenish it as soon as possible so you're ready for the next time. With an emergency fund in place, you'll be better prepared for whatever life throws your way.