If you’ve ever read any personal finance book, you’ve probably heard of an emergency fund. This is the idea that you open a separate bank account and deposit a few hundred dollars each month.

Slowly but surely the money piles up, creating a nice cash reserve.

You can use this money to cover any unexpected expenses or other financial emergency situations.

It’s a savings strategy to that’s done to death in every blog, book, and YouTube channel.

That’s why today’s article is different.

I want to show you a real life example of how starting an emergency fund really saved my bacon.

How To Build Your Emergency Fund

You will run into unexpected bills at least once a year. Maybe your car gets a flat tire, or you break your leg, or you get laid off from work.

These emergencies ruin most people.

The average American is forced into debt whenever they’re faced with an unexpected cost of $1,000 or more.

Don’t let this be you.

Treat your finances like the Lords of Westeros treat their food supply. Save up during the good times so you don’t starve when things get rough.

I suggest putting away at least $200 – $300 each month. Open a special savings fund (I recommend this CIT high-interest account) and put that money in every month. It won’t seem like much at first, but it adds up fast.

After six months or so you’re sitting on nearly $2,000 in cold hard cash. And that’s just from depositing $300 a month, or $10 per day.

Like I said, little amounts add up quick.

Anyway, on to my personal story.

How Savings Saved My Bacon

Earlier this month I hot hit with a string of bad luck. I got sick and had to go to the hospital, a business project I was working on fell through, and my side gigs hit a lull.

Basically it was one bad event after another, and my monthly income took a hit.

I was pretty stressed about this and honestly felt like a loser. My bills were up, and my income was down. Never a good situation to be in. Fortunately, I have my emergency fund.

Using part of this fund, I paid all my bills and covered my rent for the next two months.

Instantly, my stress melted away.

Having a fun like this brings you piece of mind. Those rough patches where you’re hammered with surprise expenses become more manageable. And even if you’re income takes a temporary hit, you can always cover your bills while building back up.

Starting an emergency fund is old trope. This advice is beaten to death everywhere, and it ends up becoming an eye-rolling cliche most people ignore.

Do not make this mistake.

Emergency funds are fantastic shields against the unknown. They are 100% worth the effort of creating. If you don’t have one yet, start building now. It will protect when you need it most.

P.S. Looking for a place to start your emergency fund? Open a CIT Bank high-yield savings account. They offer 2.45% annual interest, one of the highest rates possible. And, your money is FDIC insured. It’s one of the safest investments you can make. Click here to learn more.