Building a rainy day fund? Avoid these 6 common mistakes.

Don't become paralyzed by the amount of money you need to save

No, the latest iPhone upgrade does not constitute an emergency.
(Image credit: iStock)

If you're like a majority of Americans, you probably have less than $1,000 in your savings account. You might not even have a savings account to begin with.

Under those circumstances, even a relatively minor life hiccup could throw you for a loop. Having an emergency fund — that bulwark against the hefty bills that can come with unexpected events — can keep your stress level down and prevent you from making bad financial decisions. But in order for that to happen, you need to avoid some bad decisions regarding the emergency fund itself. Here, six of the biggest mistakes to avoid:

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Alexis Boncy is special projects editor for The Week and TheWeek.com. Previously she was the managing editor for the alumni magazine Columbia College Today. She has an M.F.A. from Columbia University's School of the Arts and a B.A. from the University of Virginia.