Building Your Emergency Fund

Why Emergency Funds Matter

An emergency fund is your financial safety net—money set aside specifically for unexpected expenses or income disruptions. Financial experts recommend having 3-6 months of essential expenses saved.

Why This Matters

Without an emergency fund, unexpected events like job loss, medical bills, or car repairs can force you into high-interest debt, derailing your financial progress. Think of it as buying peace of mind.

How Much Do You Need?

**Conservative (3 months):** Best for dual-income households with stable jobs

**Moderate (4-5 months):** Good for most single-income households

**Aggressive (6+ months):** Recommended for self-employed, variable income, or single parents

Where to Keep It

Your emergency fund should be:

High-yield savings accounts are ideal—they offer 4-5% APY while keeping your money accessible.

How to Build It