This Small Money Move Can Help You Sleep Better at Night

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Have you ever lost sleep worrying about your money situation? You're not alone. According to a recent survey by Jenius Bank, 52.8% of respondents noted that financial stress manifests in their lives as a lack of sleep. We worry about all kinds of issues -- from saving for retirement and finding a better-paying job to being able to afford a home and pay off debt.

But worrying is like a rocking chair -- it gives you something to do, but it gets you nowhere (according to Glenn Turner). If you want to feel better about your finances, you've got to take action. One of the most accessible ways to do just that is to open a great savings account and start building an emergency fund.

Let's take a closer look at why emergency funds matter, how they improve your financial well-being, and how you can make saving easier and more productive.

Life without an emergency fund

Ultimately, having an emergency fund means being able to cover unplanned expenses as they arise, without resigning yourself to paying interest on them. Until quite recently, this was my situation. I didn't have enough money in a savings account to cover bills like an unexpected car repair or trip to the urgent care clinic that my insurance didn't fully cover.

Instead, I would put these expenses on a credit card, knowing that I'd be charged interest but without any other real option to cover my costs. As a result, I found myself deeper and deeper in debt over time, and only managed to get out when I improved my finances and increased my income after changing careers. If this is your situation, you have my sympathies and encouragement to build savings.

How much should you save?

Experts recommend having three to six months' worth of expenses in a savings account, which might seem like a huge sum of money. The intention is that you can cover those unplanned bills as they pop up, as well as potentially rely on your emergency fund if you find yourself out of work.

Imagine losing your job and knowing that between unemployment pay (and possibly severance, if you're lucky enough to get it) and your emergency fund, you'll be able to pay your regular bills until you get a new job.

Three to six months' of expenses isn't easy to save -- that could amount to tens of thousands of dollars for the average person. But you shouldn't feel bad if you can't devote much money to savings every month -- many people live paycheck to paycheck, and there's no shame there. Any amount of money put aside, even just $25 or $50 a month, can help you slowly build a pool of savings to draw from the next time an unplanned bill pops up.

Saving money isn't easy -- but these tips can help

Ready to get started? Here's how to make it happen.

• Change your mindset: If you learn to view savings contributions as a must-pay bill rather than optional, saving will start to come more naturally. The trick is to make your contributions alongside paying your rent, utilities, and so on -- don't just plan to save "whatever's left."
• Open a HYSA: The best high-yield savings accounts give you the chance to earn 4%, 5%, or more on your money. Interest yield is basically free money for doing nothing but keeping the account funded.
• Automate it: If money moves from your checking account to savings automatically, you won't have to remember to move it yourself. I recommend setting up automatic transfers to coincide with when you get paid -- no muss, no fuss.

After many years of living paycheck to paycheck, I'm proud to finally have an emergency fund, and I sleep better at night as a result. I hope you'll make building an emergency fund a financial priority this year -- you deserve it.

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