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When it comes to financial security, one of the most important things you can do is build an emergency fund. An emergency fund is money put aside, usually in a savings account, to cover unexpected expenses. These can be things like medical expenses, last-minute travel or car repair. Most experts advise saving enough to cover three-to-six months of living expenses. However, even a smaller cushion of $1,000 can be a vital step in creating financial stability and freedom. It is the first step of Dave Ramsey’s 7 Baby Steps financial solution.

Unfortunately, a 2022 Bankrate study found that more than half of Americans can’t afford a $1,000 emergency. Not being able to cover an unexpected expense can cause debt, financial stress and delayed long-term goals such as retirement. Here’s how to build a $1,000 emergency fund, keep it growing and create financial security.

Read the full article in the Finances FYI section of The Seattle Times, sponsored by 1st Security Bank.