Back in 2005, a study indicated that over 40% of us didn’t have an emergency savings fund.  Including the number of those who had some, but not enough, money socked away would undoubtedly up that number to an even more jaw-dropping level.

If you have any concern whatsoever for your own financial well-being (and I’m guessing that you do, considering that you’re reading this), you must put aside adequate savings.

We recently discussed the value of adequate savings, noting that it had value as a hedge against unforeseen emergencies and actually contributed to the ability to successfully engage in wealth-building investments.

The value inherent in the peace of mind a buffer provides would probably be enough justification for putting aside a stack of cash absent the other advantages.  When you add those other perks to the mix, it’s clear that arguments in favor of saving for emergency circumstances are just too strong to ignore.

So, how much of a stash do you really need?  That depends on who you ask.

Noted financial talkmeister Dave Ramsey says everyone should start by putting aside a thousand bucks.  That isn’t much and it isn’t the extent of savings you’ll need.  It’s just the first step in his plan.  He recommends eventually building a heftier account.  After you prove you can save some money and “get the ball rolling”, most experts will say that you should pile up the equivalent of between three and six months earnings.

Please note that this savings process should come before other excursions into personal finance activity.  You want to lock that cabbage in the basement before you worry about which stocks to buy or anything else.  Keep your bills current and save.  There will be time for wise investment after you have created that security cushion.

Sounds great, but the reason so many people don’t save isn’t their drive to find good investment opportunities.  The fact of the matter is that many people are barely making ends meet.  Many of those who do have enough income to stay well-fed and sheltered have horrible spending and money management habits.  Regardless of the causes, the fact is that most people don’t end up with extra money to put into savings at the end of the month.

That means that many of us will have to learn how to save.  It’s a simple concept, but it can be hard to implement.  It involves beating old habits and making a concerted effort to create (and stick to) a budget.

If you haven’t done a full household budget yet, get on the ball.  You need to do it, as it’s going to be the base of your overall financial plan.  Those numbers are also going to show you exactly how much you can afford to save.

It might take awhile to save the equivalent of three to six months pay, but it’s worth the wait.  You’ll be better protected against the unforeseen and you’ll feel more secure.  You will have learned how to live within your means, which will give you a boost when it comes time to start making those investments.

If you’re wondering what it’s going to take for you to take care of your emergency fund needs, take a look at this calculator.  If you’ll go through the effort of inputing accurate data, it will come up with a pretty darn accurate savings plan for you.

You know that saving is essential.  Now it’s time to get started.