You should have enough money in reserve to make it through a job loss or other emergency. Experts usually recommend a safety net of 3 to 6 months income. The problem is, well, that’s a lot of money. In Courtney’s case, she’d need a safety net of $4,185 to $8,370. How is she supposed to set that much aside on an already tight budget?

There are ways to fudge these numbers, as long as you’re aware that your safety net is not as thick and sturdy as it could be. At the very least, you should have three months of rent set aside and a way to borrow additional cash if it becomes necessary, whether that’s from an unsecured loan at your credit union, your credit card, from a relative, or against other savings.

However you build it, build it. It’s like having a spare tire in your trunk. You may never need it, but you’ll be darned glad you have it if you do. And you’ll feel safer just knowing it’s there. In fact, if you put that emergency fund in an interest-bearing account at your credit union, it will even earn you some money while it offers you security. That makes it even more useful than a spare tire. Check out our retirement section for tips on how to use your retirement savings as part of your safety net, too.

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