Nothing in life but uncertainty is ever certain, so it’s always wise to prepare for the unexpected.

Emergencies can arise at the drop of a hat and unless you are ready you can find yourself in for a whole lot of unnecessary pain and financial worry.

Financial emergencies can come in the form of a lost job, illness, car troubles or house problems.

When the unexpected strikes, the last thing you want to have to rely on is using your credit card or having to take out a loan to put things right. The best way is to establish an emergency fund and prepare for the unexpected.

Experts recommend establishing an emergency fund that can cover your living expenses for between three and six months. This way, in a worst case scenario, where you loose your job, you will hopefully have enough time to regain employment without having to worry about utility bills, mortgage or rent payments and food.

While for most people the idea of six months worth of money waiting in a bank account is not practical, you can start making some preparations to ease the burden should trouble hit you. Having a fund that will cover emergency costs will both save you money in the long run, negate credit card or loan charges but will also earn you interest as well.

Domestic emergencies cover a wide range of topics and while most will be covered by the average insurance policy, some will not.

Destruction due to flooding or fire can cause a major problem and will to all intensive purposes be covered but you may find that you need money immediately to replace damaged goods or buy emergency supplies. Major system failures such as boilers, central heating or air-conditioning units can also throw up sudden expenses, even such things as new fridges, washing machines and dishwashers can cost a pretty penny.

Illness and stays in hospital can be another reason for emergency funding. Even if you use the NHS facilities you will still incur additional expenditure, from the television and phone in the patients room, car-parking costs and baby-sitting if you have children. There are many unexpected draws on your income and this will be especially true if you do not have an understanding boss or are self-employed.

Car accidents are another source of emergency, again insurance may provide some cover but not always the total cost and inconvenience of losing the use of your vehicle. Policies may not provide for a temporary replacement car, you may need hospital treatment or thieves could have stolen irreplaceable items from your car that were not covered.

Holiday emergencies are probably some of the worst dramas you can face. Being in a foreign country, in need of medical assistance, airlines gone bust or a natural disaster strikes. Suddenly your paradise in the sun becomes a nightmare and you have to find a way of extracting yourself from the trouble. This is the last moment you will want to be worrying about how you’re going to get home and an emergency fund can provide you with peace of mind.

While hopefully you never need to dip into your emergency fund, even having at least a small amount stashed away will provide some comfort and help if the unthinkable happens.