An emergency fund is money that’s set aside for unexpected expenses, such as a medical bill or loss of income. They allow you to cover these unplanned expenses, so you don’t have to use a high-interest credit card or take out a loan. Individuals should aim to save 3-6 months’ worth of their basic living expenses. Learn 5 simple steps to start your emergency fund today.
How to start:
- Determine your emergency fund goal
- Save money in a separate account away from day to day spending
- Set up automatic transfers until you hit your goal
- Put in a high-yield savings account
- Only use for emergencies
Calculate your emergency fund goal here
