Do you have enough money in your emergency fund?

The figures are alarming. Half of us don't have enough money saved to cover living expenses for three months, according to a recent survey done by Another 28 percent have no emergency savings at all!

Why is an emergency fund so important?

"It gives you a little pile of money that you can draw on for those little setbacks that we all have in every life and that prevents you from having to put it on your credit cards and paying interest on it," says Liz Weston, author of the book "Deal with Your Debt" says look for little ways to save.

"People think that they have to save up three months' worth of expenses right away and the reality is that can take years even to get that sum put together. So don't put that high a goal. Start with something simpler. Start with $500 or $1,000."

Liz suggests opening a separate account for your emergency fund in order to reduce the temptation to tap into it.

If you're trying to cut expenses, Weston advises looking at what you spend for food.

"Most people spend more than they need to there. And if it's still hard for you to cut back, look at some of the luxuries you've got. Everybody loves their pay TV, but there are a lot of people who have cut the cord and that could save you significant money every month that you could be putting into an emergency fund."

For more information

Start an Emergency Fund to Prepare for Financial Emergencies