In terms of emergencies, it is so important to be saving money. While no one likes to think about the possibility that they will lose their job, become disabled, or have some other sort of disastrous financial crisis, the fact of the matter is that it happens to people all of the time. Even much smaller emergencies, such as needing car repairs, are better handled by having saved money along the way, as opposed to having to scrape money together during a crisis. Saving money is so important for these types of situations. If at all possible, you should have a savings of three months worth of your expenses to help in case of emergencies.

Saving money is important for planning ahead, too. Almost every parent would like to see their children go to college, for example. However, many children will not be able to go to college on scholarships. Those that do not will either have to find a way to pay for college or to take out student loans. Student loans may not even cover all of their expenses. Saving money is an important part of providing for your child or childrens’ education. Education is not the only area that parents should save for, in regard to their children. For example, in the same way that parents save money as an important part of education, they may also save money for their childrens weddings, or to help their child buy their first car, or even their first home.

Finally, saving money can be an important part of just enjoying life. Taking a trip to Disney World is a lot more enjoyable when you know that you have paid for the trip with money from savings, as opposed to using credit cards and having to pay for the trip for years to come.

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2. Distinguish and automate your savings.

Create a dedicated savings account for your small business, and de-link it from your checking and other accounts so you’re not tempted to dip in.

3. Try lowering your “fixed expenses.”

The phrase “fixed expenses” implies they’re just that: fixed. On the contrary, items such as utility bills and credit card interest rates are often negotiable. First, make a list of your regular recurring expenses (usually charged monthly). You can do this by highlighting them on a printed account statement.

4. Make your money work for you.

When you do build up a savings stash, it’s important to make sure you’re storing it in the right place. For example if you know you won’t need your savings stash for at least one year, you can store it in a certificate of deposit (CD) — a savings certificate with a fixed maturity date, on which you can withdraw your deposit and the interest it’s accrued.

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