Why families should have 2 emergency funds

When it comes to being financially prepared for unexpected expenses, an emergency fund can really come in handy. In fact, experts say that you should aim to save three to six months' worth of expenses in an emergency fund so that in the event of a loss of income, you should be able to cover all your necessary expenses — like food, rent, loan payments and insurance — for up to six months to buy yourself time to get a new job.

But for many people belonging to immigrant and first-generation American families, one emergency fund might not cut it. Of course, anyone, regardless of their background, will want to help their family through a surprise financial obligation. Though, many adult children of immigrants often feel pressured to "pay their families back" for their sacrifices by shouldering some of those big expenses — even when it means putting a financial strain on themselves.

This is where having two emergency funds can come in. According to Latina money expert Jannese Torres-Rodriguez, the idea of having an emergency fund for herself and one for her family came from her financial planner — and it's an idea that can help provide financial assistance to your family without totally draining your own emergency fund.

There are different approaches to preparing for an emergency but according to Torres-Rodriguez, the biggest mistake people make is to think that it can't happen to them.

"The biggest thing people get wrong when it comes to having an emergency fund is thinking 'it can't happen to me,'" she said. "It's not if it'll happen, but when it'll happen. And when you have an emergency fund, you can relax a little knowing that you're prepared."

The idea of having to build not one but two emergency funds can be overwhelming — especially if you're already saddled with many of your own expenses and financial obligations. But as with anything, proper preparation can take some time and it doesn't need to all be done at once.

"When it comes to planning for two emergency funds, it's the same idea as being on a plane and putting your oxygen mask on first," Torres-Rodriguez said. "Prioritize yourself first, then you can figure out how much assistance you can comfortably extend to your family."

But if you feel that saving up for two emergency funds is beyond your financial capabilities, you can encourage your family to collaborate with you on building their emergency fund. Explain that the money should be used for unexpected expenses — like a medical bill or surprise home repair — and that preparing now can help them avoid going further into debt to cover such an expense.

Then once you set up the account, you can show your family members how to transfer money to it whenever they can — $20 here and $30 there can really add up over time! Plus, having your whole family pitch in instead of shouldering the obligation alone can relieve some financial pressure and help them build their emergency fund faster.

Select put together a handy guide for getting started with an emergency fund but Torres-Rodriguez also had a few pointers for anyone who's new to saving for surprises.

"Start by understanding your monthly obligations and what would need to be paid for," she explained. "This could be insurance, transportation costs, student loan payments and other things you don't want to fall behind on. Then, multiply that amount by the number of months you want to save for and that will be the total amount for a fully funded emergency account."

She also explained that you should avoid putting your emergency money in the same savings account you use for your other goals. Ideally, you'd want your emergency fund to be stored in a high-yield savings account so your money can keep growing even if you don't contribute to the account. And, it should be hard to access the money with a debit card so you aren't tempted to spend for non-emergencies.

Personally speaking, I've been really satisfied with the Marcus by Goldman Sachs High Yield Online Savings account. It took just about 10 minutes to sign up for and it was really easy to link my checking account so I can make transfers. There's also no minimum deposit needed, so you can take that first step to open the account and fund it when you're ready or have the money available, no matter the amount. Ally also offers the Ally Online Savings Account which has a "buckets" feature to help you organize different savings goals.

It's natural to immediately want to help your family cover large emergency expenses. But emptying your personal emergency fund for a family expense could put you in a bad situation if you wound up with a surprise expense of your own. This is why having a personal emergency fund and a family emergency fund can allow you to help your parents and siblings while still planning for your own future emergencies.

There are many ways you can go about executing this idea, but the worst thing you could do is think that you won't ever have an unexpected expense. Having an emergency fund can give you that much-needed wiggle room to breathe a little easier.