To build an emergency fund, follow these steps: 1. Determine the amount you need, typically three to six months' worth of living expenses. 2. Set a monthly savings goal based on this amount. 3. Choose a high-yield savings account to maximize your interest earnings. 4. Automate your savings by setting up a monthly transfer from your checking account. 5. Adjust your budget to prioritize emergency fund contributions. 6. Periodically review and adjust your savings goal as needed.
Take the role of a financial advisor. A client asks for advice on how to build an emergency fund. What steps would you suggest they take?