We can never really prepare for an emergency, emotionally. Whether that emergency involves your home, your vehicle, your job, you or your family, you are most likely to going to meet it upset, lost and confused. However, the emotional strain lessens if you are able to prepare for an emergency financially.
Almost all kinds of emergency require money. You might need an airline ticket home to attend to a loved one; money to repair your home or vehicle, and more money if someone is sick or you have just lost your job.
Cushion yourself and your finances from emergency by setting up a contingency fund that would only be used for these very specific reasons. Do not touch this fund for other expenses, even if they are basic ones. Your basic necessities like food, mortgage and utilities should be covered separately in your budget.
The contingency fund should be at least three to six months worth of your monthly expenses. You can start small by allocating a percentage to it from your income, but you should consistently add to the fund as you go. Keep the contingency fund in a safe place, like a bank account, but it has to liquid so it is readily accessible even at the last minute.