2 min

The emergency fund

A cushion for surprises, so a flat tire doesn't turn into debt.

An emergency fund is money saved only for the unexpected: the car, the dentist, a week without work. It's not for vacations or sales.

First goal: $500 to $1,000. It covers most small surprises.
Big goal: 3 to 6 months of your fixed costs.
Keep it apart from your everyday account, where you don't see it every day.

Example

Save $25 a week and in 10 months you have about $1,000. If you use some, start filling it again.

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General information, not financial, tax or legal advice.

The emergency fund