How To Prepare an Emergency Fund

Lower insurance costs by increasing the deductible — the amount you pay out of pocket before your insurance kicks in. Higher deductibles mean lower monthly premiums.

Sell possessions you can live without on eBay, through online classified ads such as Craigslist, or at a yard sale.

Put the proceeds of your cash-generating measures into the highest-yielding interest account you can find that does not penalize you for early withdrawal.

Set up an automatic deduction from your paycheck that goes directly into your savings account.

Earn some extra money with part-time work. Maybe a local merchant could use an extra pair of hands over a holiday. Or perhaps there’s a resort area nearby that hires part-time seasonal help. Babysitting and yard work are also effective standbys.

Keep your hands off the money unless you have a true emergency.