It's not a good idea to live without a savings cushion — you're one job loss or car maintenance emergency away from serious trouble. Don't be daunted by that three-to-six-months-of-living-expenses number (what most financial planners advise you have in your emergency fund). It's not as scary as you think. Here's how to get started.

This is for you: If you don't have enough cash in savings to float you for even one month if you lost your paycheck tomorrow.

Hands-on time: 15 minutes

Total time: Up to a few days to set up a new savings account, if you don't have one already

How much you should save: As mentioned, experts recommend having three to six months of living expenses stowed away. Here's why that's not terrifying: "Living expenses" doesn't mean "salary." It means the amount you'd need to cover the absolute essentials: Rent or mortgage, utilities, insurance, food, and minimum credit card and loan payments. The point, says Christine Benz, director of personal finance at Morningstar, is to have some money so you don't have to live off your credit cards. Bare minimum? Aim for $1,000.

Cost: As much as you can spare.

What you'll need: A bank account and an Internet-connected computer. (Note: If you have to open a savings account, you may need your social security number, date of birth, driver's license number, and information for your existing bank account.)

What to do:

1. If you don't already have one, find an interest-earning savings account on Bankrate.com.


2. Choose a bank paying one of the higher interest rates (lately, that's not so much, but it's better than nothing). We recommend sticking to institutions with a Bankrate star ranking of three stars or more. Make sure there are no monthly fees and that you can meet the minimum balance required to open an account.


3. Open an account. If you do it at a bank branch, you'll have your new account immediately. Do it online and it'll take a few days, but you don't have to get out of your pajamas. Up to you.


4. Set up an automatic recurring transfer from your existing checking account to this new savings account. Our recommendation: Have money transferred on paydays.


5. Choose an amount to transfer. If you're really strapped, it doesn't have to be huge. Start with $20 if you must.


6. Ta-da! You're now saving for an emergency. Welcome to adulthood.


7. Leave the account alone. Don't touch the money. This isn't your emergency pizza stash.


8. If the initial transfers are going well, consider raising your contribution amount. Again, it doesn't have to be a huge boost-raise it by $5 if you can do nothing else. Revisit every few months.


9. Once you hit your savings goal, don't stop there. Consider saving for another goal-a house, college, or even a fancy vacation! You earned it.

To learn more:

• Emergency Funds 101 (LearnVest)
• Emergency Fund Worksheet (Bankrate)

Who helped: Greg McBride, senior financial analyst for Bankrate.com.


Did you do it? Tell us what worked or share other tips in the comments below.


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Related Links:

Where to turn for emergency cash

Why you need $500 in the bank

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