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My young sons and I are learning to play chess together. And, yes, my five year old is already wiping the floor with me. But I find one of the most daunting aspects of the game to be the opening move. Did you know there are entire books written on the subject?

Your financial opening move is much easier to determine. After you have defined and prioritized your financial goals, you should establish an emergency fund for your family, if you don’t already have one. An emergency fund can be any form of liquid asset like a savings or checking account or money market fund. Liquid means that you can easily convert this asset to cash without penalties or delays. Credit cards and long-term CDs don’t count, as there is usually a cost associated with accessing those resources.

Your emergency fund should equal around 6 months of living expenses, excluding income taxes and any amount you regularly contribute to your savings. The theory behind the exclusions is that if the worst should happen, and you lose your job, you would not be paying those taxes associated with earning an income and obviously you would be drawing down your savings instead of adding to it.

Think of your emergency fund as a safety cushion, so if something unexpected happens you won’t have to derail your other financial goals by dipping into those savings for something minor, or at a disadvantageous time such as during a down market.

Two important last thoughts on an emergency fund to remember: 1) if it was necessary to use part of it, replenish it as soon as possible, and 2) be sure to increase the size of the fund as your expenses grow.