It’s not a matter of if, but when an emergency will arise. Having an emergency fund can reduce stress,
prevent your having to liquidate retirement savings, and avoid interest on emergency credit card debt or loans.
Watch our workshop on Saving for Emergencies
Create the habit of saving for emergencies
Begin by setting up a direct payroll deposit into a separate savings account. As a rule of thumb, your ultimate goal should be to have at least 3 to 6
months of living expenses saved. Start gradually by setting interim goals of $500 and $1,000. Plan to leave the money in emergency fund and only
withdraw it for emergencies. Bank, credit union, or online savings accounts are usually the best vehicle for saving in your emergency fund.
Determine how much you can save
Use one of these resources to determine how much you can contribute per paycheck
After setting up your savings account, find your Core Financial Principles Task Checklist and check off “Save for emergencies."