Emergency Fund Essentials

An emergency fund is a financial safety net that covers unexpected expenses like medical emergencies, car repairs, or sudden job loss.

1. How Much to Save?

Aim for 3–6 months of living expenses as a minimum.

2. Where to Keep It?

• High-yield savings account
• Money market account
• Keep it separate from regular checking

3. How to Build It

Start small: save a portion of each paycheck, automate transfers, and reduce non-essential spending.

4. Avoid Using It for Non-Emergencies

Strictly use the fund only for unexpected and urgent situations.

5. Review Regularly

Adjust fund size based on lifestyle changes, inflation, or major life events.

Conclusion

Having an emergency fund provides peace of mind and financial stability. Start small, stay consistent, and protect yourself from unforeseen events.