Not being prepared can get you into trouble when an emergency strikes. For most people, the rule of thumb is to keep enough savings on hand to cover at least 3-6 months’ worth of expenses. But understand that the exact number varies according to personal factors like your job security and other risks. You don’t want to rely on more debt or cashing out your retirement savings in order to cover an emergency. The hardest part is getting the fund together from scratch when you don’t have it. But once it’s there, you can have peace of mind in knowing there’s a cash cushion to break a fall.