Who would have thought that last nights high winds would have taken off the back patio roof… or dropped the windmill right on top of the new Mercedes? It happens. You don’t expect it – that’s why we call it preparing for the unexpected, but you can do just that: prepare for it. “Unexpected’s” can come in the form of a job layoff, a sudden illness, or even the mother-in-law showing up unannounced!

Think back to when your parents set a big jar on your dresser and made you put all your coins in there. It has really changed very little. Perhaps the overall dollar amount should vary from you coin jar. In fact, experts suggest that families should have saved up at least three to six months of living expenses for emergencies. The reason for this ideal number is for sudden changes in unemployment. If you have prepared for this scenario, then something as simple as the car windshield, or mother-in-law showing up should be a piece of cake.

Don’t expect to have three to six months stashed away by tomorrow. In fact, if you do, you will feel overwhelmed and lose sight of your goal. Look forward to having one month’s expenses saved up. That is usually an achievable goal when first starting out, and can also give you a sense of at ease knowing that you are covered and have accomplished this goal. From there your goal is to increase to three months expenses. If you put a twenty dollar bill in an envelope in between your mattress every pay period, before long, you won’t even realize that you are missing the twenty bucks.

Keeping your money in a coin jar, may not be the wisest idea since the amount we are saving has grown significantly. A savings account is the best place to start. Some individuals have a portion of their check automatically deposited into an interest bearing savings account every pay period and additionally saving at home in an envelope. Saving small amounts at home allows you to see results, but can also be a greater temptation to spend. Also consider money market accounts or certificate of deposits (CDs).

It isn’t a good idea to tie this money up in the stock market or mutual funds as it is uncertain what the market will do, and you end up losing money rather than saving it.